In a U.S. Treasury auction, a noncompetitive bid is one in which an investor agrees to buy a specified number of securities at the discount rate or yield set at the auction. The limit for noncompetitive purchases is $5 million for each security type and term, for each auction. This limit applies regardless of whether buying a bill, note, bond, or TIPS and regardless of what method used to make the purchase (TreasuryDirect, broker, or dealer).
The article may contain affiliate links from one or more partners. Learn how we make money to continue our financial wellness mission.