Bill Auction


DEFINITION of 'Bill Auction'

A public auction for Treasury bills that is held weekly by the U.S. Treasury. Currently there are 17 authorized primary dealers that are required to bid directly upon each issue. This is the manner in which all U.S. Treasury bills are issued.

BREAKING DOWN 'Bill Auction'

The winning bid on each issue will determine the interest rate that is paid on that issue. Once an issue is purchased, the dealers are allowed to hold, sell or trade the bills. The demand for bills at auction is determined by market and economic conditions.

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  2. What is the relationship between the current yield and risk?

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  3. Who or what is backing municipal bonds?

    Municipal bonds are backed by dedicated taxes or revenue sources related to specific projects, or by the full faith and credit ... Read Full Answer >>
  4. How stable are municipal bonds?

    Stability is relative in the municipal bond market. Municipal bonds tend to be safer than many other types of investments, ... Read Full Answer >>
  5. What do cities do with the funds generated from municipal bonds?

    Funds generated from the sale of municipal bonds may go to provide for unspecified, general government financial needs, or ... Read Full Answer >>
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