WASHINGTON (MarketWatch) – The Treasury Department on Friday gave another indication that is thinking about issuing floating-rate notes. The indication came in the latest series of quarterly questions for the bond dealers. A floating rate note has a variable interest rate that gets adjusted periodically and is generally seen as offering investors protection against rising interest rates. Treasury has never issued floating rate notes although Fannie Mae and Freddie Mac have. Other governments have issued such notes. Treasury officials asked dealers on the optimal structure of the product, how it would affect Treasury’s overall borrowing costs and whether there would be strong market demand for the new product. At the same time, Treasury asked bidders if it should let the yield on an auction of Treasury bills come in below zero if that is where the security is trading.