Welcome
Banking Law News

U.S. to Start Issuing 20-Year Bonds to Fund Rising Deficit (5)

Jan. 17, 2020, 12:03 PM

The U.S. Treasury will start issuing 20-year bonds in the first half of 2020, expanding its roster of securities as the government seeks ways to fund a ballooning deficit.

Institutional investors have been clamoring for more longer-dated, risk-free securities that offer some nominal yield, amid a global total of $11 trillion of debt with negative rates. Japanese officials have discussed adding a 50-year security, something the U.S. opted against in its announcement.

“The 20-year bond fits more easily into the existing market structure,” said Lou Crandall, chief economist at Wrightson ICAP LLC in New York. “This is a...

To read the full article log in. To learn more about a subscription click here.