Mutual Funds/Treasury's Floating Notes
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.
Thank you for your query. The special thing about them is that the rate is not fixed till the maturity date. It floats or changes during the life of the note. Here is the link to Treasury and all the info on these notes: http://www.treasurydirect.gov/indiv/products/prod_frns_glance.htm
You can also check the auctions held and even place a non - competitive bid. I cannot furnish you with investment advice but from the stand point of economics, seems to be an interesting way to sell more government debt. Similar products have been around for many decades in other countries.