Single-price auction

Single-price auctions are a pricing method in securities auctions that give all purchasers of an issue the same purchase price. They can be perceived as modified Dutch auctions. This method has been used since 1992 when it debuted as an experiment of the U.S. Treasury for all auctions of 2-year and 5-year notes. There is only one main difference between the multiple-price system and the single-price system. In the multiple-price format, the ranking of the desired yield and the amount stated by the competitive bidders is from the lowest to the highest yield and the amounts awarded are at the individual yields submitted by the participants. In the single-price format, all bids accepted by the Treasury are awarded at the same interest rate which is the highest yield of accepted competitive bids.^[1]

^ Archibald, Christine M.; Malvey, Paul F. (October 1998). "Uniform-Price Auctions: Update of the Treasury Experience" (PDF). Office of Market Finance U.S. Treasury Washington, D.C: 4.

[1] Archibald, Christine M.; Malvey, Paul F. (October 1998). "Uniform-Price Auctions: Update of the Treasury Experience" (PDF). Office of Market Finance U.S. Treasury Washington, D.C: 4.

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