billy d
Baruch MFE, Class '11
- Joined
- 2/2/10
- Messages
- 28
- Points
- 18
The US Treasury has been urged to sell “ultra-long” bonds with maturities of up to 100 years to help lower the government’s borrowing costs.
The longest bond issued by the US has a maturity of 30 years, and in recent years, the UK, France and China have sold 50-year debt. Extending the average maturity of its outstanding debt beyond the current 59 months would enable the US to take advantage of prevailing low yields on bonds.
On Monday, a member of the Treasury Borrowing Advisory Committee raised the issue at a regular quarterly meeting with officials from the US Treasury and Federal Reserve Bank of New York.
The group consists of 13 senior executives from Goldman Sachs, JPMorgan Chase, Morgan Stanley, RBS Securities, Bank of America and investment firms active in Treasury trading, including Soros Fund Management, Moore Capital and Tudor Investment Corp.
The TBAC member, who was not identified in minutes of the meeting published on Wednesday, recommended that the Treasury consider ultra-long bond issuance, defined as securities issued with a tenure of 40, 50 or 100 years.
Investors would welcome the sale of such ultra-long debt as it would satisfy the long-term investment needs of banks, pension funds, insurers and retail investors.
To read the whole article, follow the link:
FT.com / Capital Markets - US Treasury urged to sell ultra long bonds
The longest bond issued by the US has a maturity of 30 years, and in recent years, the UK, France and China have sold 50-year debt. Extending the average maturity of its outstanding debt beyond the current 59 months would enable the US to take advantage of prevailing low yields on bonds.
On Monday, a member of the Treasury Borrowing Advisory Committee raised the issue at a regular quarterly meeting with officials from the US Treasury and Federal Reserve Bank of New York.
The group consists of 13 senior executives from Goldman Sachs, JPMorgan Chase, Morgan Stanley, RBS Securities, Bank of America and investment firms active in Treasury trading, including Soros Fund Management, Moore Capital and Tudor Investment Corp.
The TBAC member, who was not identified in minutes of the meeting published on Wednesday, recommended that the Treasury consider ultra-long bond issuance, defined as securities issued with a tenure of 40, 50 or 100 years.
Investors would welcome the sale of such ultra-long debt as it would satisfy the long-term investment needs of banks, pension funds, insurers and retail investors.
To read the whole article, follow the link:
FT.com / Capital Markets - US Treasury urged to sell ultra long bonds