What is the difference between non-competitive and competitive applications?

Non-competitive Application

• In a non-competitive application, you only specify the amount you want to invest and not the yield. You may wish to choose this option if you wish to invest in the bond regardless of the return or are unsure of what yield to bid.
• Do note that in an auction, non-competitive applications will be allotted first, up to 40% of the total issuance amount. If the amount of non-competitive applications exceeds 40%, the T-bills will be allotted to you on a pro-rated basis.
• You will get the T-bills at the cut-off yield, which is the highest accepted yield of successful competitive applications.

Note: Submitting multiple non-competitive applications does not increase the chance of successful allotment. Allotment takes into account the aggregate total amount applied by each investor, and not the number of applications submitted by each investor.

Competitive Application

• If you wish to invest in the T-bills only if it yields above a certain level, you can submit a competitive application.
• In the application, you can specify the minimum yield you are willing to accept in percentage terms, up to 2 decimal places. Please be mindful not to submit in price terms.
• Please note that you may not get the full amount that you applied for, depending on how your application compares to the cut-off yield.
  

Note: A lower yield represents a more competitive application, as you are indicating that you will accept a lower interest rate. You can submit multiple competitive applications.