Wanna buy a 100-year bond paying 2-2.5%? (The market might)

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https://www.bloomberg.com/news/articles/2019-08-16/u-s-treasury-to-do-ma...

 

With interest rates on 30-year U.S. debt hitting all-time lows this week, the government is once again considering whether to start borrowing for even longer.

The U.S. Treasury Department said Friday that it wants to know what investors think about the government potentially issuing 50-year or 100-year bonds, going way beyond the current three-decade maximum.  The government stressed that no decision has yet been made on ultra-long bonds, explaining that it’s looking to “refresh its understanding of market appetite.” The idea was broached before, back in 2017, but was shelved after receiving a less-than-warm reception.

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The announcement follows a plunge in the 30-year yield to a record low this week below 2%...

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...the yield on a 50-year issue would be expected to come in around 10-30 basis points above the 30-year rate.