A public auction for Treasury bills that is held weekly by the U.S. Treasury. Currently there are 17 authorized primary dealers that are required to bid directly upon each issue. This is the manner in which all U.S. Treasury bills are issued. 



|||The winning bid on each issue will determine the interest rate that is paid on that issue. once an issue is purchased, the dealers are allowed to hold, sell or trade the bills. The demand for bills at auction is determined by market and economic conditions.