Designing effective auctions for treasury securities

Bartolini, Leonardo; Cottarelli, Carlo

Journal Article

Designing effective auctions for treasury securities

Abstract: Most discussions of treasury auction design focus on the choice between two methods for issuing securities--uniform-price or discriminatory auctions. Although auction theory and much recent research appear to favor the uniform-price method, most countries conduct their treasury auctions using the discriminatory format. What are the main issues underlying the debate over effective auction design?

Keywords: Auctions; Government securities; Treasury bills;