Definition
A bond whose interest rate isn't fixed. It resets as short-term rates change. The US Treasury sells two-year FRNs whose rate resets every week based on its 13-week (three-month) Treasury bill auctions.
The story
At its quarterly refunding on Nov 4, 2026, the Treasury said it expects to keep the sizes of its regular note and bond auctions, and its FRN auctions, unchanged "for the next several quarters," dropping the words "at least" (Reuters). Many analysts read that as a hint that auction sizes could change in 2027.
Why markets watch it
How much the government borrows, and in what form, affects Treasury yields, which affect mortgages, stocks and gold.
Connects to
Treasury bills, notes and bondsQuarterly refundingTreasury auctionTreasury yield
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