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.