Bloomberg is launching its U.S. Treasury Floating Rate Bond index, which will track the U.S. Treasury's new floating-rate securities, confirmed Srikant Dash, head of Bloomberg Indexes.
Data on the index will be available beginning Jan. 31. The Treasury's first auction of the bonds is scheduled for Jan. 29.
“We believe the security will get a fair amount of interest from investors looking to protect themselves from a rising interest rate environment as well as from money managers looking to add to their portfolios,” Mr. Dash said in an interview.
Since the Treasury is planning to schedule additional issuances in the future, the index will capture the “entire universe of floating-rate securities.”
Mr. Dash added that Bloomberg expects to have this index available for trading via an ETF in the near future.