Treasury Notes

 In Case You Missed It: Assistant Secretary Rutherford Discusses Floating Rate Notes on Bloomberg

By: Anthony Reyes

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.  

Watch the full interview below:

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Anthony Reyes is the New Media Specialist at the United States Department of the Treasury.​
Posted in:  Debt Management
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