In a Treasury auction,preferential bidding status is granted to

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Preferential bidding status is granted to noncompetitive bidders in a Treasury auction. Noncompetitive bidders are typically small individual investors who bid for a fixed amount of securities at yields set by the auction. They are guaranteed to receive their requested amount of securities as long as their bid is at or below the yield determined at the auction. This preferential treatment is intended to encourage small investors to participate in Treasury auctions. Competitive bidders, on the other hand, bid for securities at specific yields but are not guaranteed to receive the full amount they bid for. Short sale committed bidders and commercial bank bidders are not relevant to Treasury auctions.

In a Treasury Auction,preferential Bidding Status Is Granted to