U.S. Treasury to Issue More Worthless IOUs

From Holden:

I wonder if the proposed 30-year Treasury Bonds will outperform the T-Bills Chimpy is pushing.

“Treasury is considering whether or not to reintroduce regular issuance of a 30-year nominal Treasury bond,” Assistant Secretary for Financial Markets Timothy Bitsberger said in a statement.

“We will examine if we have 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 added.

[snip]

Most bond dealers advising the Treasury said they favored reintroduction of the 30-year bond.

“Most members felt that given the decline in the average maturity of debt and the likelihood that it will decline further in coming years, a reintroduction would give the Treasury greater flexibility with a modest associated cost,” the advisory committee said in a report to Treasury Secretary John Snow.