The US Treasury department will not begin issuing floating rate notes (FRNs) linked to the secured overnight financing rate, or SOFR, until it completes a planned overhaul of its auction system. “We’re in the process of a large conversion of our auction system. To manage expectations, we have decided that if we do issue in SOFR, we will implement it after the new system is complete,” said Craig Philips, counselor to the secretary of the US Treasury. “We will focus on that event – which is 2020 Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content. To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe You are currently unable to print this content. Please contact [email protected] to find out more. You are currently unable to copy this content. Please contact [email protected] to find out more.
The US Treasury department will not issue SOFR-linked FRNs until at least 2020, according to Craig Philips, counsellor to the secretary of the US Treasury. In a statement released on Wednesday, Philips said that while it was “premature for us to speculate about timing or other details regarding our future relationship with the central bank”, he expected the two sides would