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DeluxeXL t1_j29uyi4 wrote

If you buy new issues, you are indeed participating in an auction. You'll enter your price ceiling (limit order). At the end of the auction, you'll get the number of units you've won, or none at all if you're outbid by everyone else.

Each auction has highs, lows, and averages.. Some people win at a lower price (higher yield). Some people win at a higher price (lower yield).

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netll t1_j29zpv0 wrote

I am a newbie of t-bill + brokerage. So, different people purchase same t-bills at a different price?

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If yes, any good strategy to have a slight favor?

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DeluxeXL t1_j29zxyj wrote

> So, different people purchase same t-bills at a different price?

Yes.

> If yes, any good strategy to have a slight favor?

Be patient and set your limit, and always be prepared to not get anything at all.

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Citryphus t1_j2aekv0 wrote

At a T-bill auction most investors enter a non-competitive bid. You are bidding for the amount of T-bills you want and agree to accept the auction price, whatever it turns out to be. Large investors and institutions enter competitive bids, indicating the rate/yield that they will accept. Those competitive bids help determine the outcome of the auction and the rate/yield you receive.

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