Glossary term
What is a Treasury floating rate note?
On , at the auction of the 2-year FRN (a reopening), the high discount margin, the spread over the 13-week bill rate, was 0.040%.
High discount margin at the 2-year FRN auction of 23 September 2026: 0.040%, below the median of the earlier auctions shown, 0.139%
Each point is one 2-year FRN auction; pointing at the chart shows its date and figures.
The lineLatest:
- High discount margin0.040%
Inspect and compare dates
| Auction date | High discount margin |
|---|---|
| 0.040% | |
| 0.055% | |
| 0.050% | |
| 0.079% | |
| 0.089% | |
| 0.103% | |
| 0.115% | |
| 0.099% | |
| 0.099% | |
| 0.139% |
Show 14 more rows
| Auction date | High discount margin |
|---|---|
| 0.168% | |
| 0.190% | |
| 0.200% | |
| 0.195% | |
| 0.159% | |
| 0.157% | |
| 0.144% | |
| 0.160% | |
| 0.105% | |
| 0.090% | |
| 0.098% | |
| 0.140% | |
| 0.170% | |
| 0.205% |
Right now
High discount margin: 0.040% at the 2-year FRN auction of , a reopening.
- Median discount margin 0.010%
- Bid-to-cover ratio 2.63
Across auctions
0.040% is below the median of the 23 earlier 2-year FRN auctions shown, 0.139%.
Of the 24 auctions shown, the highest was 0.205% on , the lowest 0.040% on .
Understanding the Treasury floating rate note
Where it stands today
High discount margin: 0.040% at the 2-year FRN auction of .
What does the term mean?
A Treasury floating rate note (FRN) is a two-year note whose interest changes every week. It pays the latest 13-week bill auction rate plus a fixed spread, and that spread is set at the FRN's first auction.
Read more
How the interest is worked out
The index is the high discount rate of the most recent 13-week bill auction, turned into a money market yield. Each day the note earns the index plus the spread, and the interest is paid every three months. If the sum is ever below zero, the day earns nothing.
What the auction sets
Bidders do not bid a yield. They bid a discount margin: the spread they want over the index. The high discount margin is the highest one Treasury accepted, and every winning bidder gets it, as in any single-price auction.
- At a new issue, the high discount margin becomes the note's fixed spread for its whole life.
- At a reopening, the spread is already fixed, so the high discount margin sets the price instead.
Reading an FRN result
An FRN result shows a high, median and low discount margin, a bid-to-cover ratio and who bought, like other notes. It has no high yield. Compare a margin only with earlier FRN auctions, not with the yield of a fixed rate note.
What it does not tell you
- What the note will pay next month. That depends on future 13-week bill auctions.
Drafted with AI assistance from official sources; checked against the sources listed below.
The numbers behind the chart
What were the figures at the latest auction?2-year FRN (reopening), 23 September 2026
| Figure | Value |
|---|---|
| High discount margin | 0.040% |
| Median discount margin | 0.010% |
| Bid-to-cover ratio | 2.63 |
Which pages show these figures?
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