The U.S. government is one again considering issuing bonds with 50- or 100-year maturities, according to Bloomberg News.
The longest maturity Treasury is the 30-year bond, and its yield fell to a record low 1.94% on Aug. 15, before ending the week at 2.03%. An even longer maturity bond, which would presumably have a slightly higher yield than the 30-year bond, would allow the federal government to lock in extremely low interest rates for an even longer period of time and help finance a growing budget deficit.
The deficit is expected to reach between roughly $900 billion, according to the Congressional Budget office, and $1 trillion, according to the White House, this year.
No decision has been made yet by the Treasury, which first wants to gauge investor in such bonds, Bloomberg reported.
The Treasury had considered bonds with maturities beyond 30 years in spring 2017 but eventually abandoned the idea. At the time the yield on the 30-year Treasury was around 2.9% — well above its current yield.
