Note Auction

Categories: Investing and Trading, Bonds and Treasuries,

A bid to sell notes to investors conducted periodically by the u.s. treasury. Only authorized securities dealers (banks, brokers and financial institutions) called primary dealers, are allowed to and obliged to take part in this process. Afterwards, dealers can hold, sell or trade these bonds to their customers. The interest rate to be paid on each issue is determined based on the maximum amount offered by a bidder.