Home » Bond Auction

Bond Auction

« Back to Glossary Index

A government bond auction is the process of selling short and long-term government bonds to investors in an attempt to minimize the cost of financing national debt.

The process starts with the central bank announcing how much money it intends to borrow. Details like the term length of the bonds and the date of the auction are included in the announcement.

Interested market players like broker-dealers, institutions, and individual investors then submit the amount of bonds that they

Related
Monetary Policy

Monetary policy refers to the actions taken by a nation’s central bank to influence the availability and cost of money and credit to Read more

Kathy Lien

Kathy Lien is an expert in global currencies, author, and Managing Director of BK Asset Management. For retail FX traders back Read more

European Parliament

The European Parliament is the European Union’s law-making body. It is directly elected by EU voters every 5 years. It is a Read more

Open Position

An active trade that has yet to be closed.

« Back to Glossary Index