For a regular investor, the most important questions a result answers are:
Key results to look for
Amounts & demand
The total value of Treasury Bills the government planned to issue for that tenor.
The total amount investors requested. Comparing this with the amount offered indicates market demand.
The total value of bids accepted by the issuer — may be equal to or lower than the amount offered.
Yields
The marginal yield at which bids are accepted. Competitive bids beyond this level are generally unsuccessful.
The average yield of all accepted bids, adjusted for the size of each bid — larger bids carry more weight. The clearest read on the auction's overall return level.
The lowest yield accepted — usually corresponds to one of the highest accepted prices.
The highest yield accepted — usually corresponds to the lowest accepted price.
Prices per ETB 100
The average accepted purchase price per ETB 100 of face value, adjusted for the size of each accepted bid.
e.g., at ETB 96.80 per 100, investors paid an average of 96.80 to receive 100 at maturity.The highest accepted purchase price per ETB 100. A higher price generally means a lower yield.
The lowest price accepted in the auction. Competitive bids below this price are generally unsuccessful.
What Is the Difference Between Competitive and Non-Competitive Treasury Bill Bids?
A competitive bidder specifies the price or yield they are willing to accept and may receive a full, partial or zero allocation depending on the cut-off. A non-competitive bidder accepts the applicable auction outcome under the current eligibility rules.
Competitive investors choose the price or yield they're willing to accept. The result depends on how their bid compares with the auction cut-off.
Non-competitive investors don't choose their own price or yield. They accept the auction outcome — usually the final weighted average — under the applicable rules.
| Competitive | Non-competitive | |
|---|---|---|
| Specifies a yield or price? | Yes — the bidder names their terms | No — accepts the auction outcome |
| Pricing outcome | Their bid yield, if accepted | The applicable auction outcome under current rules |
| Allocation uncertainty | Full, partial or zero, depending on the cut-off | Generally allocated under the applicable rules |
| Relationship to the cut-off | Rejected if it prices beyond the cut-off | Not ranked against the cut-off |
| In NBE result tables | Drives the cut-off and weighted-average figures | Shown separately where reported |
| Eligibility in Ethiopia | Standard route via licensed intermediaries | Depends on current NBE rules and procedures |
| Confirm with your intermediary | Bid format and deadline | Whether non-competitive bidding is available to you |
How to read a result in practice
Suppose a result shows:
What to compare over time
One auction result is far more useful when compared with previous auctions. Watch for: