COMPETITIVE BID AUCTION

   An auction method commonly used to issue government bonds, with underwriters submitting bids for certain amounts. The bonds are then allocated according to the level of demand at rates determined by the level of the bids. The highest bids are allocated their requests in full. The remaining bids are met in descending order until the issuer has sold the required amount of bonds.

   ► See also Dutch Auction, Non-competitive Bid Auction.