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Committee advises Treasury to study issuing SOFR‑indexed floating rate notes further

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The minutes document the Committee's conclusion that Treasury should further study issuing a SOFR‑linked FRN.

Source summary
The Treasury Borrowing Advisory Committee met in a closed session on February 3, 2026, to review fiscal projections, dealer forecasts, and investor demand trends and to provide issuance guidance. Treasury staff reported large swings in Q1 FY2026 receipts and outlays, dealers reduced FY2026-28 borrowing estimates by $258 billion and signaled a potential $1.1 trillion privately-held funding shortfall in FY2027-28. The Committee discussed SOFR-indexed FRNs, alternative buyback mechanisms, and a proposal to issue 7-year notes quarterly with reopenings, and unanimously recommended maintaining current nominal coupon, FRN, and TIPS auction sizes.
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Latest fact check

Treasury Borrowing Advisory Committee minutes from February 3, 2026 state that after discussing dealer feedback and the pros and cons of a SOFR-linked FRN, the Committee concluded that Treasury should study the idea further. This aligns with the claim that the Committee concluded Treasury should study issuing a SOFR-indexed floating rate note further. The official Treasury press release reproduces the same conclusion in its meeting summary.

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Timeline

  1. Update · Feb 04, 2026, 09:38 PMTrue
    Treasury Borrowing Advisory Committee minutes from February 3, 2026 state that after discussing dealer feedback and the pros and cons of a SOFR-linked FRN, the Committee concluded that Treasury should study the idea further. This aligns with the claim that the Committee concluded Treasury should study issuing a SOFR-indexed floating rate note further. The official Treasury press release reproduces the same conclusion in its meeting summary.
  2. Update · Feb 04, 2026, 08:31 PMTrue
    The official Minutes of the Meeting of the Treasury Borrowing Advisory Committee (Feb. 3, 2026) record: “The Committee briefly discussed the feedback from dealers and the pros and cons of Treasury issuing a SOFR-linked FRN, and concluded that Treasury should study the idea further.” The Committee's Report to the Secretary (Feb. 4, 2026) also states TBAC supported exploring the viability of a SOFR FRN. Verdict: True — both the meeting minutes and the committee report explicitly state the Committee concluded Treasury should study issuing a SOFR‑indexed floating rate note further.
  3. Original article · Feb 04, 2026
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