A type of bidding where the investor specifies the discount rate or yield he or she will accept for a security that will be auctioned. This type of bidding is available only in the Commercial Book-Entry System. Investors who use TreasuryDirect or Legacy Treasury Direct engage innoncompetitive bidding; this means they agree to accept any discount rate or yield determined by the auction.
The article may contain affiliate links from one or more partners. Learn how we make money to continue our financial wellness mission.