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Meaning / Definition of

Noncompetitive Bid

Categories: Bonds and Treasuries,

Investors who can't or don't wish to meet the minimum purchase requirements for competitive bidding on treasury bills or notes may enter a noncompetitive bid.You can invest as little as $1,000 or as much as $5 million in each new issue through treasury direct. treasury direct is a system that allows you to buy government securities without going through a bank or a brokerage firm. The Treasury sells T-bills, for example, to all noncompetitive buyers whose bids arrive by the weekly deadline, for a price equal to what competitive bidders pay for that week's issue.A noncompetitive bid may also be known as a noncompetitive tender.

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