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VOL. 129 | NO. 16 | Friday, January 24, 2014

US Treasury Introduces New Debt Product

AP

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WASHINGTON (AP) – 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.

Treasury 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.

Mary Miller, Treasury's undersecretary for domestic finance, said the new debt product should attract new investors and the increased demand will help hold down the government's cost in financing its rising debt.

Treasury 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.

The floating 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.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 83 405 4,276
MORTGAGES 104 424 4,814
FORECLOSURE NOTICES 0 68 749
BUILDING PERMITS 148 883 10,151
BANKRUPTCIES 53 264 3,149
BUSINESS LICENSES 46 201 2,092
UTILITY CONNECTIONS 21 122 1,246
MARRIAGE LICENSES 20 94 808