The Treasury writes "Assistant Secretary Rutherford Discusses Floating Rate Notes on Bloomberg", which says, "After the Treasury Department announced details of the first Floating Rate Note (FRN) auction yesterday, Assistant Secretary for Financial Markets Matthew Rutherford appeared on Bloomberg TV to discuss the introduction of the first Treasury security in 17 years. FRNs are a type of marketable security with a floating interest rate that resets each day and makes coupon payments each quarter. Speaking to Bloomberg's Peter Cook, Assistant Secretary Rutherford explained how Treasury's debt management office plans to use FRNs to manage Treasury's maturity profile. He added, "Over the coming year, it will probably replace some of our T-Bills so we're not introducing any incremental interest rate risk into the portfolio but at the same time, we are getting a longer maturity" for Treasury debt." See also, "Treasury Announces First Floating Rate Note Auction," which explains, "The U.S. Department of the Treasury's Bureau of the Fiscal Service today announced details of the first Floating Rate Note (FRN) auction, a new type of marketable security with a floating interest rate that resets each day and makes coupon payments each quarter. Today's announcement marks the first new security Treasury has offered since Treasury Inflation Protected Securities (TIPS) were first auctioned in 1997."
