The multiple price/yield auction is divided into competitive bids and non-competitive bids. As for competitive bids, the bidding prices (yields) are accepted in descending (ascending) order. Successful bidders pay for awarded securities at prices (yields) equivalent to their individual bidding prices (yields). Non-competitive bidders pay for awarded securities at the price equivalent to the weighted average of accepted competitive bidding prices (yields). When the total subscription amount of non-competitive bids exceeds the non-competitive public offering amount, securities will be awarded according to the percentage of subscription amounts. In the past, central government bonds and treasury bills were issued by the multiple price/yield auction. The coupon rate of central government bonds was set at 0.125% increment, closest to but not above the weighted- average yield of successful competitive bids.[4]
The multiple price/yield auction is divided into competitive bids and non-competitive bids. As for competitive bids, the bidding prices (yields) are accepted in descending (ascending) order. Successful bidders pay for awarded securities at prices (yields) equivalent to their individual bidding prices (yields). Non-competitive bidders pay for awarded securities at the price equivalent to the weighted average of accepted competitive bidding prices (yields). When the total subscription amount of non-competitive bids exceeds the non-competitive public offering amount, securities will be awarded according to the percentage of subscription amounts. In the past, central government bonds and treasury bills were issued by the multiple price/yield auction. The coupon rate of central government bonds was set at 0.125% increment, closest to but not above the weighted- average yield of successful competitive bids.[4]