Changes to the Debt Distribution Framework
| Competitive Bidding Limits | Non-Competitive Bidding Limits | Acceptable Price Range for Submission of Bids at Auctions | Minimum Participation Requirements | |||||
|---|---|---|---|---|---|---|---|---|
| Current Rules | New Rules | Current Rules | New Rules | Current Rules | New Rules | Current Rules | New Rules | |
| Primary Dealers | ||||||||
| For own account | Treasury bills: 25 per cent Bonds: From 10 to 25 per cent |
No change | $3 million | No change | Cut-off yield + 5 basis points** | Cut-off yield + 10 basis points | 50 per cent of their maximum bidding limit at every auction | No change |
| For customers | Limited to the Primary Dealer's bidding limit | Limited to 25 per cent of the tender | $3 million | $ 10 million $ 3 million for RRBs* |
None | No change | None | No change |
| In aggregate | Limited to 40 per cent of the tender | No change | $6 million | $ 13 million $ 6 million for RRBs |
None | No change | 50 per cent of their maximum bidding limit at every auction | No change |
| Government Securities Distributors | ||||||||
| For own account | Treasury bills: 10 per cent Bonds: From 1 to 9 per cent | No change | $3 million | No change | None | No change | None | One successful bid (competitive or non-competitive) every six months on their own behalf or on behalf of customers |
| For customers | Limited to the greater of 5 per cent or the Government Securities Distributor's bidding limit | Limited to 10 per cent of the tender | $3 million | $ 10 million $ 3 million for RRBs |
None | No change | None | None |
| Customers | 25 per cent | No change | $3 million | $ 5 million | None | No change | None | No change |
*RRBs: Real Return Bonds
** Secondary market yield + 5 basis points in the case of strong RRB auctions. On a trial basis since 1 June 2004.