The current auction method used by the U.S. Treasury encourages competitive bidders to bid low.

Question

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The current auction method used by the U.S. Treasury encourages competitive bidders to bid their true value. In a single-price auction, all successful bidders receive the securities at the same price, which is the highest yield (lowest price) that allows the Treasury to sell the entire issue, encouraging bidders to bid competitively to ensure their participation without the incentive to bid low.

The Current Auction Method Used by the U