US Treasury delays decision on floating rates

[May 03, 2012]  WASHINGTON (AP) -- The U.S. Treasury Department is postponing a decision on whether to issue securities with floating rates or negative yields, saying it wants more time to study the changes that could help finance the rising national debt.

Treasury said it was still examining selling securities with a floating interest rate rather than a fixed rate. It also said it continued to study selling securities that could be auctioned with negative yields, which essentially provide a means for investors to pay the government for the privilege of buying those securities.

Treasury officials said they are still studying a large number of comments on the two new types of securities. They gave no timetable for making a decision. Three months ago they said they expected to decide by May.

[Associated Press; By MARTIN CRUTSINGER]

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