FRNs are unlikely to be added to the BAGG index (TIPS are also not included), so TR managers may be slow to adopt them since they won't have an incentive to purchase simply to maintain a benchmark-like risk-return profile. Later this year or early next, the U.S. Treasury is scheduled to issue its first new form of security since Treasury Inflation-Protected Securities ( TIPS ) in 1997: Treasury Floating-Rate Notes (FRNs). On May 1, the Treasury announced its intention to issue two-year FRNs.