The competitive bidding method used for single price/yield auctions is the same as that for multiple price/yield auction. The bids are accepted in descending (ascending) order of bidding prices (yields). However, all successful bidders are required to settle their awarded securities at the lowest accepted price (the highest accepted yield) at the auction. The single yield auction method has been applied to the issuance of treasury bills since October 2001 and to the issuance of central government bonds since July 2004. The coupon rate of central government bonds is set at 0.125% increment, closest to but not above the highest accepted yield of successful competitive bids. [4]
The competitive bidding method used for single price/yield auctions is the same as that for multiple price/yield auction. The bids are accepted in descending (ascending) order of bidding prices (yields). However, all successful bidders are required to settle their awarded securities at the lowest accepted price (the highest accepted yield) at the auction. The single yield auction method has been applied to the issuance of treasury bills since October 2001 and to the issuance of central government bonds since July 2004. The coupon rate of central government bonds is set at 0.125% increment, closest to but not above the highest accepted yield of successful competitive bids. [4]