Definition of Maturity by Maturity Bidding (MBM)

A bond auction that allows bidders (who are underwriters) to submit bids for selected maturities in its issue, rather than requiring buyers to bid for the entire issue on an all-or-none (AON) basis.

Understanding Maturity by Maturity Bidding (MBM)

This gives smaller underwriting firms more flexibility, allowing them to bid for part of the issue.