The lowest accepted competitive bid in a Canadian Treasury auction determines the ________. Such a resulting price is also known as stop-out bid.

Question

Quizplus · Accepted Answer

The cut-off yield is the lowest accepted competitive bid in a Canadian Treasury auction, also known as the stop-out bid. Therefore, the correct answer is E. Yield curve, yield-to-maturity, non-competitive bid, and recent yield are not determined by the lowest accepted competitive bid in a Treasury auction.

The Lowest Accepted Competitive Bid in a Canadian Treasury Auction