If you participate in a Treasury bill (T-bill) auction and your bid is successful, you are generally expected to have sufficient funds in your bank account to cover the purchase. If you don't have enough funds to cover the T-bill purchase when the settlement date arrives, you may face some consequences:
-
Failed Purchase: The purchase may fail, meaning you won't receive the T-bill you bid for.
-
Possible Restrictions: Depending on the rules of the auction and the policies of the institution through which you're bidding, you may face restrictions or penalties for future T-bill auctions.
-
Credit Impact: Failing to meet financial obligations like this could negatively impact your credit rating or standing with the institution involved.
