What is Government Bond auction in Forex Trading?

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Government Bond auction is a very important financial process used by  selling short and long-term government bonds to traders in order to reduce the expenses related national debt financing .The process starts after central bank announces about amount of bonds they want to borrow . This announcement includes date of auction and  term length of the bonds .Interested big players like  institutions, individual investors, broker-dealers,and institutions have to submit their requests for  amount of bonds they want to buy.

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