Treasury bonds are issued through a competitive tender process where dealers submit bids as interest rates and bonds are allocated to the highest bidders.

Question

Quizplus · Accepted Answer

Treasury bonds are issued through both competitive and non-competitive bidding processes. In competitive bidding, bidders specify the yield they are willing to accept, and bonds are allocated based on the lowest yields. Non-competitive bidders agree to accept the yield determined at auction, ensuring they receive the bonds.

Treasury Bonds Are Issued Through a Competitive Tender Process Where