The auction technique has been used for selling Discount Treasury Bills since as early as 1988. It has became a regular and frequent issuing technique for the Hungarian Government Bond since March 1996. As auctions became more wide-spread, the transparency of the primary market improved since the yield levels and offering amounts were easy to monitor, and the prices were evolving through competitive bidding at the auctions. Due to the flexibility of the method and its competitive nature, it allows the government to easily adapt to the market even under rapidly changing circumstances, and ensures efficient distribution of securities among investors.