The concept of issuing 50 or 100-year bonds dates to at least 2009 and has recently gained traction within Treasury. For the Trump administration, issuing extremely long-term debt would limit the cost to taxpayers of plugging a budget deficit that’s headed to US$1 trillion annually. Pension funds would enjoy a few extra points of returns amid falling yields.
(Aug 29): Treasury Secretary Steven Mnuchin said issuing ultra-long US bonds is “under very serious consideration” in the Trump administration, possibly setting up a move that would mark a historic revamp of the US$16 trillion ($22 trillion) Treasuries market.
“If the conditions are right, then I would anticipate we’ll take advantage of long-term borrowing and execute on that,” Mnuchin said Wednesday in a Bloomberg News interview in Washington. He said officials held a meeting earlier in the day to review the possibility.
