What is an account auction?
Auctions of billing is an event where people offer accounts for the United States Treasury. The auction result determines the price of the issued accounts in addition to determining the interest rate, which is used by the financial industry as a comparative rate. Because this has an impact on the economy, the results of the bills tend to be reported in financial publications and are also available in business or financial parts of most newspapers. Analysts can also discuss unusually busy auctions and their consequences for the market as a whole. People who prefer to get their information from the source can find the latest auction information on the Treasury website. This includes treasury bonds, cash registers and accounts for the treasury, also known as T-Bills. People who invest in the cash register securities do not earn as much money as they could with some of the investments, but benefit from the fact that securities are very low risk. Are supported by the United States Government and would therefore be forInvestors had to cost something very dramatic to loss.
Bill uses a Dutch auction style clerk. A high initial price desired is offered and slowly decreases until the applicant corresponds. This determines the highest possible price for securities. Applicants in the auction of billing are institutional investors who buy very large blocks of securities. People who do not wish to be present may indicate that they will pay the average auction rate and the securities will be earmarked for them.
These auctions are held at different intervals. On Monday, regular billing auctions are planned for short -term securities and there are also monthly auctions. The Ministry of Finance may decide to organize auctions for Other times to deal with special circumstances. If the scheduled auction of the bill drops on vacation, it will be overcrowded because government and financial markets are not active during the holidaysand. The schedules are announced well in advance to allow people to participate in plans.
individuals who want to buy cash register securities can do so through brokers or programs operated by the Ministry of Finance. While the value of securities is determined by auctions, individuals do not participate in the cash register auctions, as they do not deal with volumes required by ordinary state investors.