lc26mizzou

Joey, I appreciate your response. Realized I brought my book to work, so this is directly from my schweser notes (book 5, pg. 46)
“Regular cycle auction  single price. Under this method the debt is auctioned periodically according to a cycle and the highest price (lowest yield) at which the entire issue to be auctioned can be sold is awarded to all bidders. This is the system used by the U.S. Treasury”
So, combining that with your answer…
Advantages of competitive bids:
A) Can buy in greater quantities (per your $5M max for NC bids)
B) Know the maximum price you’ll be filled at. Can potentially be lower if you bid a higher price than what is awarded to all bidders.
Anything missing there? Thanks for helping my feel this out.