WASHINGTON - The Treasury Department announced Thursday that it will auction a new Treasury security with variable interest rates next week. It will be the first new Treasury security offered in 17 years.
said it will auction $15 billion of the new floating rate notes on Jan.
29. The two-year security will have an interest rate that resets every
day and will be tied to the three-month Treasury bill.
“Floating-rate notes bring additional diversity to Treasury’s current
portfolio and help support our goal of saving taxpayer dollars by
financing the government’s borrowing needs at the lowest cost over
time,” said Mary Miller, Underdecretary for Domestic Finance. “Over
the past three years, Treasury has worked closely with market
participants to design the FRN program and we appreciate their continued
said it expected to offer the floating rate securities each month with
auctions at the beginning of each quarter in January, April, July and
October and then a re-opening of the security in the subsequent months
in each quarter.
rate notes are the first new Treasury debt product since Treasury
inflation protected securities were first auctioned in 1997. The
notes will be sold in increments of $100 with a minimum purchase of
$100. Interest payments will be made on a quarterly basis.
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