Dictionary of Banking Terms: stop-out price
stop-out price
lowest price the U.S. Treasury Department accepts in an auction of a new issue of Treasury securities. Securities sold at this price pay the highest yield. When the Treasury auctions securities, it accepts tenders starting at the highest bid price and continues to fill bids at gradually lower prices until the entire amount of securities has been sold. Usually, the Treasury also reports the percentage of stop-out bids accepted in an auction of new securities.
Dictionary of Finance and Investment Terms: stop-out price
stop-out price
lowest dollar price at which Treasury bills are sold at a particular auction. This price and the beginning auction price are averaged to establish the price at which smaller purchasers may purchase bills under the noncompetitive bid system.
