You are here:

Mutual Funds/Treasury's Floating Notes

Advertisement


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
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.
Good luck

Mutual Funds

All Answers


Answers by Expert:


Ask Experts

Volunteer


Docs99

Expertise

Due to licensing issues, I am unable answer any question related to investment or financial advice.

Experience

over 20 years in financial services

Education/Credentials
MPA from Harvard University

©2016 About.com. All rights reserved.