69
      Saturday
      82 / 67
      Sunday
      85 / 70
      Monday
      79 / 60

      Government to sell Treasury security with variable rate

      The U.S. Treasury will be offering its first new security in 17 years with a 2-year note that will have a variable interest rate.

      MARTIN CRUTSINGER, AP Economics Writer

      WASHINGTON (AP) ?? The government says it will begin selling Treasury securities next year that have variable interest rates. It's the first new Treasury security in 17 years.

      Treasury officials said Wednesday that the initial offering on Jan. 29 will be in a range of $10 billion to $15 billion. Auctions will occur each month. The securities will have a two-year maturity and the rate will be allowed to go up or down. It will be pegged to rates on three-month Treasury bills.

      The government expects more investors will be drawn to the prospect of earning higher yields if rates go up. And it believes the attractiveness of the new security will offset any risk of having to pay more to borrow funds.

      Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.