WASHINGTON —The U.S. Treasury is delaying a decision on whether to start borrowing in an unconventional way to help cover the federal budget deficits: by offering Treasurys with variable interest rates, like those on some home mortgages. The Treasury said Wednesday that it wants more time to study how the system would work.
It’s also looking into whether to start issuing debt with negative yields. Investors would, in effect, pay the government for the privilege of socking their money in ultra-safe Treasurys.
Many global investors have been shifting money into Treasurys out of fear of riskier securities, especially those linked to Europe’s debt crisis. Such demand has helped drive down Treasury yields and made it cheaper for the U.S. government to borrow.
