US Treasury’s new securities

The US Treasury is launching its first new type of security in over 15 years at the end of the month, revealing a type of bond that pays varying interest as market interest rates rise or fall. The US government revealed that $15bn (£9.02bn) of the new floating rate notes (FRN) will be auctioned next week. The bonds are referred to as “floaters” and are likely to be more attractive to investors during periods in which interest rates are gradually rising.