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Beginner Investing/Treasury Floating Rate

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Question
Hi, I heard that the Treasury just introduced their first floating rates notes. Can you tell me what's so special about those notes that makes them so different? Are they only for international buyers? Has the Treasury held auctions before regarding Treasury Notes? Are there any way that I can take part in that auction? Thanks for answering.

Answer
Hi Kerry,

I am not sure if this type of note makes sense at this point. The interest rate paid on these would go up if the 13 week Treasury bill rose.  Short rates have not moved much in years and are not expected to move in the near term.  They are not only for international investors.  These securities were launched at the beginning of this year.  You can go to the following site to buy them:

http://www.treasurydirect.gov/indiv/products/prod_frns_glance.htm

I hope this helps.

Best,

Michael Weiss, CFA
Series 7 Exam Tutor
http://www.series7examtutor.com
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Michael Weiss, CFA

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I am the owner of Series 7 Exam Tutor , a financial tutoring business that provides personalized tutoring for the Series 7 Exam, the Series 6 Exam ,the Series 65 Exam, the Series 66 Exam, the Series 63 Exam and the Series 24 Exam . I also offer tutoring for finance courses. For additional information, please visit, Finance Exam Tutor. Prior to launching Series 7 Exam Tutor, I worked in investments for 20 years with the majority of this time focused on investment analysis and portfolio management. I have worked for large companies such as Merrill Lynch and Evergreen Investments and have also worked for smaller firms as well. Throughout my career, I have sought to mentor younger colleagues whenever possible, especially those enrolled in the CFA program. I completed the CFA program in 2002 after passing all three exams on the first try. I also passed the Series 7 Exam with a score of 94%. For additional information about me, you can visit the links below:
http://www.series7examtutor.com
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http://www.series65examtutor.com
http://www.series66examtutor.com
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M.B.A. in Finance & Investments from the Zicklin School of Business at Baruch College and a B.A. in Finance & Economics from the City University of New York Baccalaureate Program.

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