X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON – Nearly four years since the U.S. Treasury Department stopped issuing the 30-year bond, officials said on May 4 they are reconsidering bringing them back. “We will examine if we have the flexibility to issue 30-year bonds while maintaining deep and liquid markets in our other securities and determine if nominal bond issuance is cost effective,” U.S. Assistant Treasury Secretary for Financial Markets Timothy Bitsberger said in a statement. Treasury stopped issuing new 30-year bonds in October 2001 as the government continued to buy back outstanding bonds and seek other alternatives to reduce its outstanding debt. A deficit of $427 billion is expected this year, according to White House officials. One of the reasons cited for bringing the bonds back include the effects of boosting issuance of longer-dated Treasury inflation-protected securities, or TIPS, which turned out to not be a good substitute to selling longer-dated nominal debt, officials said. Treasury last year began selling a 20-year TIPS bond, the longest maturity of debt it now sells. A final decision on whether to bring the bonds back will be determined in August in Treasury’s next quarterly refunding announcement.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.