THE FOLLOW UP
STATEMENT

TBAC supports Treasury exploring issuance of a SOFR-linked floating rate note, citing dealer support

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Evidence from credible sources supports the statement as accurate. Learn more in Methodology.

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The TBAC’s report records support for Treasury exploring a SOFR FRN and notes majority dealer support for exploring issuance.

Source summary
The Treasury Borrowing Advisory Committee (TBAC) reported to the Secretary that U.S. Treasury yields were largely unchanged with stable domestic fixed-income markets, though global volatility (notably a rise in Japan government bond yields) and commodity/currency swings were observed. The Committee supported Treasury exploring issuance of a SOFR Floating Rate Note (FRN), and recommended keeping nominal coupon, FRN, and TIPS auction sizes unchanged for now while noting that FY2027 could warrant larger coupon issuance. TBAC highlighted market impacts from Federal Reserve actions (including Reserve Management Purchases) and data distortions from the October–November 2025 government shutdown that may affect upcoming inflation readings.
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Latest fact check

Official Treasury documents confirm the statement: the TBAC Report to the Secretary (Feb 4, 2026) and the TBAC meeting Minutes (Feb 3, 2026) on Treasury.gov state that the Committee "supported Treasury’s efforts to explore the viability of a Secured Overnight Financing Rate (SOFR) Floating Rate Note (FRN)" and that Treasury’s primary dealer survey showed a majority of dealers supported exploring issuance. The TBAC minutes summarize primary dealer feedback that "most dealers expressed support for Treasury issuing SOFR-indexed FRNs" and record that the Committee concluded Treasury should study the idea further. Verdict: True — the official TBAC report and minutes directly confirm both the Committee’s support for exploring a SOFR-linked FRN and that a majority of primary dealers supported exploring issuance.

Sources

Timeline

  1. Update · Feb 04, 2026, 09:41 PMTrue
    Official Treasury documents confirm the statement: the TBAC Report to the Secretary (Feb 4, 2026) and the TBAC meeting Minutes (Feb 3, 2026) on Treasury.gov state that the Committee "supported Treasury’s efforts to explore the viability of a Secured Overnight Financing Rate (SOFR) Floating Rate Note (FRN)" and that Treasury’s primary dealer survey showed a majority of dealers supported exploring issuance. The TBAC minutes summarize primary dealer feedback that "most dealers expressed support for Treasury issuing SOFR-indexed FRNs" and record that the Committee concluded Treasury should study the idea further. Verdict: True — the official TBAC report and minutes directly confirm both the Committee’s support for exploring a SOFR-linked FRN and that a majority of primary dealers supported exploring issuance.
  2. Update · Feb 04, 2026, 08:33 PMTrue
    The Treasury's official TBAC report (Feb 4, 2026) and the TBAC meeting minutes (Feb 3, 2026) explicitly state that the Committee supported Treasury's efforts to explore the viability of a SOFR-indexed Floating Rate Note and that a majority of primary dealers supported exploring issuance. The minutes record that “Most dealers expressed support for Treasury issuing SOFR-indexed FRNs” and that the Committee “concluded that Treasury should study the idea further.” Verdict: True — the claim accurately reflects the official Treasury report and meeting minutes, which directly corroborate both the Committee’s support for studying a SOFR FRN and primary-dealer backing for exploring issuance.
  3. Original article · Feb 04, 2026
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