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Bond Auction

A government bond auction is the process of selling short and long-term government bonds to investors in an attempt to minimize the cost of financing national debt.

The process starts with the central bank announcing how much money it intends to borrow. Details like the term length of the bonds and the date of the auction are included in the announcement.

Interested market players like broker-dealers, institutions, and individual investors then submit the amount of bonds that they

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