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.

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