Bond analysts saw little to like in the Treasury’s refunding announcement Wednesday, when it came to talk of possible new maturities.
On the one hand, they agreed with the department’s borrowing advisory panel. The committee shot down Steven Mnuchin’s idea of issuing bonds maturing in more than 30 years, citing a lack of evidence of “strong and sustainable demand.” At the same time, strategists were unimpressed with the alternatives the panel floated, including issuing 20-year securities or 50-year zero-coupon obligations to satiate long-duration investors.
