Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.

Treasury chief says U.S. seriously considering ultra-long bonds - Bloomberg

Treasury chief says U.S. seriously considering ultra-long bonds - Bloomberg
FILE PHOTO: U.S. Treasury Secretary Steven Mnuchin walks to a working breakfast at the G7 Summit in Biarritz, France, August 25, 2019. Erin Schaff/Pool via REUTERS -
Euronews logo
Text size Aa Aa

WASHINGTON (Reuters) – Treasury Secretary Steven Mnuchin said on Wednesday the possibility of issuing ultra-long U.S. bonds is “under very serious consideration” by the Trump administration, Bloomberg News reported.

“If the conditions are right, then I would anticipate we’ll take advantage of long-term borrowing and execute on that,” Mnuchin told Bloomberg in an interview.

Mnuchin said his renewed interest in 50- or 100-year bonds was unrelated to the drop in yields on shorter-term U.S. debt, Bloomberg reported.

Currently, the 30-year bond is the longest-dated U.S. Treasury bond.

Earlier this month, the Treasury Department asked for feedback from market participants about the possibility of selling ultra-long bonds. The department posed a similar inquiry in 2017.

U.S. Treasury debt yields fell on Wednesday, with 30-year yields setting all-time lows, as fears about a recession and U.S.-China trade tensions stoked unrelenting demand for low-risk government debt.

Inversion is spreading across the U.S. yield curve, where short-dated yields are running above long-dated ones, which has also unsettled investors as yield curve inversion often precedes a recession.

(Reporting by Tim Ahmann; Editing by Eric Beech and Peter Cooney)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.