US Treasury Still Mulling Floating-Rate Debt Sales

By Tom Lydon: By John Spence & Tom Lydon Many investors worried about the prospect of rising interest rates are taking a second look at ETFs that invest in floating rate debt.The Federal Reserve's bond buying and investors' desire for safety has pushed 10-year Treasury yields below 2%. However, bond investors could get hurt if interest rates finally start to rise after years of rock-bottom Treasury yields.

By Rajiv Tarigopula: In the midst of a volatile week punctuated by the Federal Reserve's reluctance to provide additional monetary stimulus to the economy, the United States Treasury made an

By Felix Salmon: Treasury announced yesterday that it was going to start issuing floating-rate notes, probably at some point next year, although the details are still extremely vague:

Manmohan Singh, Peter Stella, 14 May 2012Much of the debate over public finances in the US relates to the amount of debt, this column explores the type of debt. It criticises the recent suggestion that the US Treasury should start issuing floating rate notes.Full Article: US debt issuance since 1951 and the fallacy of issuing floating rate notes

By Michael Johnston:The latest addition to the fast-growing ETF lineup is a fund from State Street that will offer exposure to investment grade debt that adjusts interest payouts based on prevailing market conditions.

Michael Johnston submits:Continuing a recent trend on the fixed income side of the ETF arena, iShares announced the launch of an ETF that offers exposure to floating rate debt. The new Floating Rate Note Fund (FLOT) will seek to replicate the Barclays Capital U.S.

By Michael Johnston:The latest addition to the fast-growing ETF lineup is a fund from State Street that will offer exposure to investment grade debt that adjusts interest payouts based on prevailing market conditions.

Dealers and traders have been approached with plans to issue a floating-rate Treasury note that would let investors profit should rates go up and allow the US restructure its debt even more.