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The auction
The bids submitted are classified by descending order of price.
- Auctions are generally run on a modified Dutch auction basis, combining elements of the latter (single price) with elements of standard auctions (multiple prices).
- The bids submitted are classified by descending order of price.
- The General Director of the Treasury, at the proposal of a committee made up of two representatives from the Bank of Spain and two from the General Directorate of the Treasury and Financial Policy, decides the nominal amount to be issued and, on the basis of the last bid admitted, the stop-out price, on which the marginal interest rate is calculated
- All bids at or above this minimum are accepted, unless the pro rata formula is being used (affecting only bids made at the marginal price). Non competitive bids are accepted in their entirety.
The allocation price of securities is calculated as follows: bids made at the minimum price are accepted at the same; bids falling between the minimum and rounded-up weighted average price also pay the price actually bid; and bids higher than the rounded-up weighted average price and non competitive bids pay the rounded-up weighted average price.
- "The auction could be solved by means of another method if the General Directory of the Treasury and Financial Policy decided it. For example, in 2002 the 10 year Government auctions were run on a multiple price system: bids higher than minimum price pay the price bid while non competitive bids pay the weighted average price".
