Treasury Secretary Steven Mnuchin said on Tuesday that any move to issue ultra-long bonds would not be a “completely one-off”.
The Treasury has been analysing the feasibility of introducing bond issuance longer than the current threshold of 30 years. Other countries already issue ultra long bonds but the US government has looked at it before and decided against it.
In part there is concern about how much regular demand for the debt there would be from investors. The Treasury has traditionally committed to a program of ‘regular and predictable’ issuance, rather than opportunistic bond sales.
“We’re reaching out to the borrowing community and investors to see what demand is,” said Mr Mnuchin in an interview on Bloomberg TV. “What we don’t want to do is to create a program that is a completely one-off program. We want to see if it would be an important part of our borrowing capabilities.”
Mr Mnuchin has previously said that ultra long bonds “absolutely make sense”.