Treasury considering floating rate notes

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WASHINGTON, May 2 (UPI) -- The U.S. Treasury Department said it would continue to analyze feedback on floating-rate notes before deciding on a possible issuance "at a later date."

The department also announced a three-day series of security auctions for next week's quarterly refunding.

The sale of $72 billion in notes and bonds is set for May 8-10.

In the meantime, "Treasury believes that there are benefits to issuing floating-rate notes," the department said in a statement.

Having posted a request for opinions in the Federal Register, the department said it received "significant amounts of feedback" on the subject.

"Treasury will announce its conclusion about the issuance of FRNs at a later date, after our analysis has been completed," the statement said.

Floating notes are generally tied to benchmark rates plus a spread. They commonly pay out interest every three months.

The Treasury said three-year notes in the amount of $32 billion would be auctioned at 1 p.m. May 8, a Tuesday.

Ten-year notes in the amount of $24 billion would be auctioned at 1 p.m. May 9, a Wednesday, and 30-year notes in the amount of $16 billion would be auctioned at 1:00 p.m. May 10, a Thursday.