Mnuchin Risks Unsettling Markets With Ultra-Long Treasury Bonds
- U.S. likely to face resistance to issuing 50- or 100-year debt
- Evaluation of idea comes with 30-year yield near a record low
This article is for subscribers only.
The U.S. government’s latest look at expanding its bond horizon way past 30 years may also signal a shift away from the debt-issuance strategy it’s used for decades to soothe investors.
And the idea will probably encounter resistance from the elite group that advises Treasury Secretary Steven Mnuchin on how to manage America’s debt. The Treasury Borrowing Advisory Committee has previously recommended not issuing ultra-long bonds and its views haven’t changed, according to people familiar with their current and past thinking.