It all comes down to the most competitive; You can have ten persons bidding
and they will accept the most competitive bids until the Govt Amount is all taken up.
Former Member
Former Member
Originally Posted by asj:
Originally Posted by VVP:
Originally Posted by asj:
Bank of Guyana would explain it as re:
After submission, bids are accepted on a competitive basis. The higher the offer price, the lower will be the discount rate and thus the more competitive will be the investor’s bid and the greater the chances that the bid will be accepted.
T-bills are offered on a competitive basis?
Yes it is, lets say if the Government is offering one billion dollars:
Let say that the Bank A (bid for 500,000) you still have 500,000 remaining
so they go to bank B the next competitive bid
Let say that the Bank B (bid for 250,000) you would still have 250,000 remaining
Let say bank C also have bids (for 250,000) now that One Billiion would now be allocated for.
The Bank of Guyana will now accept the most competitive bids, if there are more money remaining they will go to the next competitive bid
Any yet if more money remains, they will go to the next bids.
So you will have different people paying different prices for the same $1B offer? It's not like they offer $1B take bids and then settle on one price for all offers?
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