What are the different methods for the issuance of government securities?

What will be an ideal response?

There are four methods that have been used in distributing new securities of central governments: the regular calendar auction/Dutch style system, the regular calendar auction/minimum-price offering, the ad hoc auction system, and the tap system.

In the regular calendar auction/Dutch style auction system, there is a regular calendar auction and winning bidders are allocated securities at the yield (price) they bid. This is
a multiple-price auction and the U.S. Department of the Treasury currently uses this method when issuing all U.S. Treasury securities except the two-year and five-year notes.

In the regular calendar auction/minimum-price offering system, there is a regular calendar of offering. The price (yield) at which winning bidders are awarded the securities is different from the Dutch style auction. Rather than awarding a winning bidder at the yield (price) they bid, all winning bidders are awarded securities at the highest yield accepted by the government
(i.e., the stop-out yield). This auction method is a single-price auction.

In the ad hoc auction system, governments announce auctions when prevailing market conditions appear favorable. It is only at the time of the auction that the amount to be auctioned and the maturity of the security to be offered are announced.

In a tap system,additional bonds of a previously outstanding bond issue are auctioned. The government announces periodically that it is adding this new supply.