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.


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.