Economics
Treasury Sets Stage for 20-Year Bond Reboot to Start in May
- Treasury debt issuance held at record $84b for fifth quarter
- Mnuchin adds new debt-issuance tool to contain financing costs
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U.S. President Donald Trump used Tuesday’s State of the Union to boast about a booming economy, but the federal deficit under his watch is ballooning -- forcing his Treasury Department to keep debt-sales above the financial crisis-era peak and bring back 20-year bonds.
Treasury is rebooting issuance of the 20-year bond as it seeks to lock-in historically low interest rates to help contain taxpayer cost on its growing pile of debt. The budget shortfall is set to swell to $1 trillion annually over the next 10 years as the government spends more money than it takes in to support tax cuts, increase defense outlays and an aging American population.