US Treasury.gov Auctions
Treasury.gov Auctions : US federal government sells marketable Treasury bills, notes, Floating Rate Notes (FRNs), bonds and Treasury Inflation-Protected Securities (TIPS) to the public. These marketable securities can be bought, sold or transferred once issued. You can check US Treasury.gov Auctions schedule online.
The treasury determines rate for the sale, yield or discount margin according to the market; it fluctuates with interest rate and demand in the market. Treasury holds an auction process to sell these securities and determine their rate, yield, or discount margin. One can purchase bills, notes, FRNs, TIPS and bonds from the auction or through bank or broker as well. You can sell these securities through financial institutions or broker.
Treasury.gov Auctions Process
Treasury sells securities through public auction held at regular intervals. Several days earlier to the auction, treasury makes announcements giving details of upcoming Treasury.gov Auctions and maturity date.
Participants of the auction are offered competitive and non-competitive bidding options. For non-competitive bidding, there is a purchase limit of $5 million per auction. There are bidding limits to every auction.
In a competitive bidding, the participant need to rate, yield, or discount margin that he is willing to accept, whereas in case of non-competitive bidding, you have to accept the rate, yield, or discount margin set by the authorities at auction.
At the end, Treasury accepts all non-competitive bids that are in compliance with the rules and regulations. Competitive bids are arranged in ascending order according to rates, yields, or discount margins. Securities are offered in the order until the quantity of accepted bids reaches the amount to be offered.
Who can participate in the auction?
It is open to the public, Individuals, corporations, trusts, estates etc can participate in the auction.
Government Auction Schedule
Treasury has already announced US government treasury auction schedule 2022. It is available online. One can download the schedule by clicking the link https://home.treasury.gov/services/treasury-auctions.