U.S. to Start Issuing 20-Year Bonds to Fund Rising Deficit
- Treasury will give more information in Feb. 5 announcement
- Mnuchin said Treasury will continue to evaluate other options
A visitor takes a photograph outside the U.S. Treasury building in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
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.