| | Fed Point 41: Treasury Auctions - Fedpoints - Federal Reserve Bank of New York |
 | | A typical announcement might read, "The Treasury will auction $11,000 million of 91-day bills to refund $9,000 million of maturing securities and to raise about $2,000 million new cash." The announcement is carried by most major newspapers, the financial press, and some television stations. |
 | | To ensure that the secondary market for Treasury securities remains competitive, bidders are restricted to receiving no more than 35 percent of the total amount of securities available to the public. |
 | | Treasury sells its securities to the public through single - price auctions, where both successful competitive bidders and noncompetitive bidders buy securities at a price that equals the highest accepted yield (coupons securities such as notes) or the highest accepted discount rate (bills). |
| www.ny.frb.org /aboutthefed/fedpoint/fed41.html (1283 words) |