The U.S. Treasury Department is considering reintroducing the 30-year bond and will announce its decision on Aug. 3, according to a statement from Timothy Bitsberger, assistant secretary.
"We will examine if we have the flexibility to issue 30-year bonds while maintaining deep and liquid markets in our other securities and determine if nominal bond issuance is cost effective," he said in the statement, issued with the Treasury's quarterly refunding announcement today.
If there were a change in policy, the department could conduct a semi-annual auction of 30-year bonds beginning in February 2006, Mr. Bitsberger said, adding that the department would welcome public comments on the issue.
"I think the general presumption in the marketplace is that it's going to happen," said Ken Buntrock, vice president and global bond portfolio manager at Loomis Sayles. "I'm all for the idea of it. If you look at the financing needs of the federal government going forward, with the (fiscal deficit) numbers we're talking about, the government better do some long financing."
