Noncompetitive Bid

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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).