How Auctions Work
Auctions happen in four steps: we announce the auction, we hold the auction, you bid for the amount you want, and we issue the securities.
We announce the auction
Each announcement includes the security being auctioned, the amount offered, the auction date, issue date, maturity date, terms and conditions, closing times for non-competitive and competitive bidding, and other relevant details.
Four times a year, the Department of the Treasury holds a press conference to discuss upcoming marketable security auctions — usually the first Wednesday of February, May, August, and November. At each conference, Treasury gives the tentative auction schedule for the next six months.
We hold the auction
At the auction, Treasury first accepts all non-competitive bids that comply with the auction rules. Then, competitive bids are accepted based on their rate, yield, or discount margin, from lowest to highest, until the entire offering is awarded. All successful bidders get the same rate, yield, or discount margin as the highest accepted bid.
If you bid through your TreasuryDirect account, you can see the results of your bid after 5 PM Eastern time on auction day.
You bid for the amount you want
Who may bid? All auctions are open to the public. Institutional investors may bid directly; other investors may bid through a TreasuryDirect account or a bank, broker, or dealer. (Bids for Cash Management Bills must go through a bank, broker, or dealer.) Individuals and entities — corporations, estates, partnerships, and trusts — may have a TreasuryDirect account.
How do I bid? Bids can be non-competitive or competitive.
| Non-Competitive Bidding | Maximum $10 million per auction. You agree to accept the rate, yield, or discount margin determined at the auction. If using your TreasuryDirect account, you must bid non-competitively. |
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| Competitive Bidding | Maximum 35% of the offering amount. You specify the rate, yield, or discount margin you'll accept. To bid competitively, you must use a bank, broker, or dealer. |
We issue the securities
The auction date and issue date are often a few days or even a few weeks apart. If you bid through your TreasuryDirect account, the securities go into your account on the issue date; if you bid through a bank, broker, or dealer, they get the securities for you.
You own the securities until they mature, or you may sell or transfer them before then.