"Offering a variable interest rate carries some risk to the government, which would have to pay more if, as economists expect, rates begin to rise in coming years"
That's right, American taxpayers. In the midst of sequestration and austerity the federal government is looking for even more ways to give money to the elite!
"New US Treasury securities on sale in January" by MARTIN CRUTSINGER | AP Economics Writer, August 01, 2013
WASHINGTON — The Treasury Department said Wednesday that it expects to start offering investors a new Treasury security with variable interest rates in January. It will be the first new Treasury security in 15 years.
Treasury officials said they hope to be able to tell investors the size of the initial offering in November, providing time for bond traders to adjust their computer systems for the new product.
Offering a variable interest rate carries some risk to the government, which would have to pay more if, as economists expect, rates begin to rise in coming years from the current super low levels.
Umm, in this case, dear American taxpayers, the GOVERNMENT is YOU!
And btw, rates have NOWHERE TO GO BUT UP! The Congress just did the same f*** job to the kids on student loans, too!
But hey, at least you know WHO this GOVERNMENT is WORKING FOR, Americans -- and it AIN'T YOU!!!!!
But the government is counting on attracting more investors who will be drawn by the prospect of potentially higher yields.
Treasury officials said they viewed the rate risk as minimal because the bills will basically substitute for short-term Treasury bills, which have to be renewed every three months, a frequency that already carries a rate risk for the government.
Hey, it's not their money they are risking.
A final rule describing the new floating rate notes was published Wednesday in the Federal Register. The floating rate notes are the first new product Treasury has offered investors since TIPS, Treasury inflation protected securities, were put on the market more than 15 years ago.
Anyone protecting you from inflation, Americans?
See: Fed is Working For Workers
Sorry, my mistake.
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