The Treasury Department announced Thursday that it will auction a new Treasury security with variable interest rates next week. It will be the first new Treasury security offered in 17 years.

Treasury said it will auction $15 billion of the new floating rate notes on Jan. 29. The two-year security will have an interest rate that resets every day and will be tied to the three-month Treasury bill.

Mary Miller, Treasury’s undersecretary for domestic finance, said the new debt product should attract new investors and the increased demand will help hold down the government’s cost in financing its rising debt.

Treasury said it expected to offer the floating rate securities each month with auctions at the beginning of each quarter in January, April, July and October and then a re-opening of the security in the subsequent months in each quarter.

The floating rate notes are the first new Treasury debt product since Treasury inflation protected securities were first auctioned in 1997.

The notes will be sold in increments of $100 with a minimum purchase of $100. Interest payments will be made on a quarterly basis.

(AP)