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...

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