Ash Alankar, Columnist

Treasury's Ultra-Long Bonds Have No Natural Demand

The demise of defined benefit pension plans removes the only logical buyers from the market.

June 26, 2017 at 9:00 AM UTC

By Ash Alankar

Ash Alankar is the global head of asset allocation and risk management at Janus Henderson Investors.

The Trump administration wants to sell bonds that may not mature for 100 years.
Photographer: Mandel Ngan/Getty Images

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U.S. Treasury Secretary Steve Mnuchin reiterated last week that he’s gauging the appetite among investors for ultra-long government bonds. He may be disappointed.

Although Mnuchin has said that sales of 50- and 100-year bonds “absolutely make sense,” he told Bloomberg News on June 20 that the government would only embark on such a program if it’s not a one-off, but becomes part of the Treasury’s regular debt issuance. The longest maturity currently offered by the Treasury is 30 years.