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Home / Business / The US Treasury says it gives the opportunity to issue a 50-year bond

The US Treasury says it gives the opportunity to issue a 50-year bond



Treasury Department in Washington, D.C.

Adam Jeffery | CNBC

The United States may begin issuing 50-year ultra-long government bonds for the first time, the Treasury Department said Wednesday.

Treasury "explores" potential additions to the current government securities package, including 20-year nominal coupon bonds, a 50-year nominal coupon bond and a one-year floating rate note linked to the overnight secured rate of exchange, according to the Treasury's Quarterly Refund Statement released Wednesday.

"Treasury takes a proactive approach to preparing you for future future funding needs," the statement states. No timeline was issued for the issue.

Treasury Secretary Steven Mnuchin previously told CNBC that the government could launch 50-year bonds as soon as next year, as the government looks for cheaper and longer-term ways to finance its growing debt load. The federal deficit rose 26% to $ 984 billion for the 201

9 fiscal year, the highest in seven years.

The longest duration the US government has now is the 30-year bond. More than a dozen other developed nations have issued bonds with a maturity of 40 to 100 years, including Canada, Belgium and Ireland.

President Donald Trump said earlier that the country should "refinance" its debt burden, a proposal without any modern precedent. The United States has $ 22.5 trillion in debt, of which $ 16.7 trillion is held by the public.


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