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US Treasury to offer floating rate notes in January

This is a welcome and needed addition to Treasury offerings. Most investors don't have adaquate access to the capital markets to manage interest rate (e.g. swaps) and those that do may not want the incremental counterparty risk of banks or clearing exchanges ("value adding" intermediaries?).

This from the press release:

Floating Rate Notes (FRNs)

Treasury intends to announce the details of the initial Floating Rate Note (FRN) auction on Thursday, January 23, 2014, with the first auction occurring on Wednesday, January 29, 2014. Settlement of the security will occur on Friday, January 31, 2014.  

The FRN is the first new product that Treasury has brought to market in 17 years.  The FRN will have a maturity of two years and Treasury anticipates that the size of the first auction will be between $10 and $15 billion.   

Specific terms and conditions of each FRN issue, including the auction date, issue date, and public offering amount, will be announced prior to each auction.  For more details about the new Treasury FRN product, including a term sheet, FRN auction rules, and Frequently Asked Question, please see:


In addition, a tentative auction calendar that includes Treasury FRNs can be found at:



This will be a useful tool for investors looking to manage interest rate and inflation risk.

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