Treasury to issue 20-year bonds in first half of 2020

Steven Mnuchin, U.S. Treasury Secretary. Photo: U.S. Dept. of the Treasury

Jan. 17 (UPI) — The U.S. Treasury Department announced Thursday that it plans to issue 20-year bonds in the first half of 2020.

The Treasury said it considered expanding on the current maximum bond maturation period of 30 years by reviewing ultra-long bond options such as 50- or 100-year bonds, stating it sought to expand borrowing capacity to finance the federal government at the least cost over time.

“The Treasury Department appreciates the input of market participants, including the Treasury Borrowing Advisory Committee and primary dealers, for their contributions to Treasury’s decision to launch a 20-year bond,” Treasury Secretary Steven Mnuchin said. “We seek to finance the government at the least possible cost to taxpayers over time and we will continue to evaluate other potential new products to meet that goal.”

Mnuchin launched a review into ultra-long bonds in August at the request of President Donald Trump who has said the United States should seek to take advantage of low interest rates.

“Treasury believes that there will be strong demand from investors for a 20-year bond, which will increase Treasury’s financing capacity over the long term,” Mnuchin said.

Additional information about the launch of the 20-year bond will be provided in the Treasury’s quarterly refunding statement on Feb. 5.


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