Washington • 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.