U.S. Treasury Says No Decision on Negative-Rate Bill Auctions

The U.S. Treasury Department said it hasn’t yet made a decision on whether to allow negative-rate bidding in auctions of Treasury bills.

The Treasury told members of the Treasury Borrowing Advisory Committee to study “operational issues” connected with possible negative-rate bidding, according to minutes of a conference call with members of the committee.

The Treasury said it was on schedule for its first auction of floating-rate notes late next year. The conference call was held instead of the usual dealer meeting because of Hurricane Sandy. The committee of bond dealers meets quarterly with the Treasury.

To contact the reporter on this story: Ian Katz in Washington at ikatz2@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net

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