Monday, August 26, 2019

100 year Treasury bonds

See https://johnhcochrane.blogspot.com/2019/08/why-stop-at-100-case-for-perpetuities.html
and https://www.treasury.gov/resource-center/data-chart-center/quarterly-refunding/Pages/Latest.aspx

Note Regarding Outreach Efforts

As part of an ongoing and periodic review of potential products that the U.S. Treasury Department might consider issuing, Treasury’s Office of Debt Management is conducting broad outreach to refresh its understanding of market appetite for a potential Treasury ultra-long bond (50- or 100-year bonds). No decision regarding whether to issue such a product has been made.  Treasury conducted similar outreach on this product in 2017, and wants to update its market intelligence.

The Bank of England issued Consol bonds from 1751 to 1927.  They were finally fully redeemed in 2015.

I think there would be an appetite for 50-year bonds, but they should hold off on the 100-year bonds.

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