What is US Treasury FRN (Floating Rate Note)?

US Treasury FRNs (Floating Rate Notes) are marketable debt securities issued by The US Department of the Treasury. They carry floating interest rates.

US Treasury FRNs were introduced in 2013. They are only issued electronically to your online accounts.

Each US Treasury FRN has the following features:

• It has a dated date (when it started to earn interest) and a maturity date, defining a short maturity term of 2 years.
• It carries a floating interest containing 2 components: a varying component called "Index Rate", and a fixed component called "Spread".
• Its index rate is set to match the highest accepted discount rate of the most recent 13-week Treasury Bill, and changes weekly.
• Its spread is set to match the highest discount margin at its original auction and stays unchanged to the maturity.
• It has a 3-month interest payment schedule. But its interests are calculated and accumulated daily, due to the floating nature of the interest rate.
• It has a CUSIP (Committee on Uniform Securities Identification Procedures) number to identify the series of FRNs with the same security features.

Here is an example US Treasury FRN:

CUSIP: 91282CDU2
Dated date: 2022-01-31
Maturity date: 2024-01-31
Spread rate: -0.015%

⇒ Daily Index Rate for US Treasury FRN

⇐ US Treasury FRN

⇑ US Treasury FRN

⇑⇑ US Treasury Securities