Auction · Choosing Your Investment

Choosing Your Investment

A few key decisions shape every bid — how long to invest, how much to commit, and what return level you're comfortable bidding for.

3 min readBeginner guideAuction guide

Before participating in a Treasury Bill auction, you need to make a few key decisions: how long you want to invest, how much you want to commit, and what return level you are comfortable bidding for.

The right choice depends on your financial goals, liquidity needs, and market expectations.

Decision 1

Choose your tenor

Your first decision is how long you want your money invested. Your choices are between:

28 daysShortest commitment, higher flexibility
91 daysBalanced short-term option
182 daysMedium short-term horizon
364 daysLongest standard commitment

Ask yourself

When might I need access to this money? Am I comfortable locking funds for several months?
Do I prefer flexibility or a longer commitment?
What level of risk and return is suitable for me?
Decision 2

Decide how much to invest

Next, choose the amount you want to place in the auction.

Ask yourself

How much capital am I comfortable committing?
Will I need this money before maturity?
Am I building a short-term position or managing liquidity?
Decision 3

Decide your bid strategy

If the auction requires competitive bidding, you may need to decide the yield or price you are willing to accept. This affects both:

Your potential return
Your likelihood of allocation
In simple terms: higher return expectations may reduce your chance of success, while more competitive bids may improve allocation chances but reduce returns.

If you're unsure about pricing

If you're unsure what price or yield to bid, you may want to review:

Recent auction results
Historical yield trends
Recent market analysis
Your licensed intermediary's guidance

Using past auction data can help you understand current market conditions.

Questions to ask yourself before bidding

Investment timeline

How long can I comfortably commit these funds?

Return expectations

Am I prioritizing higher returns or higher allocation certainty?

Liquidity needs

Could I need access to this money sooner?

Risk comfort

Am I comfortable with market-based auction outcomes?

Helpful tools

Use our tools to support your decision:

Common mistakes to avoid

Tenor that doesn't match your cash needs

Locking funds longer than expected can create pressure.

Focusing only on return

A higher expected return does not always mean a better bid outcome.

Ignoring recent market conditions

Past trends can provide useful context.

Investing without understanding the bid process

Make sure you understand how allocation works.

Investment decided? Here's what comes after.
Fees & Charges
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