Mnuchin says Trump administration considering 'ultra-long' bonds

Treasury Secretary Steven MnuchinSteven MnuchinMenendez, Rubio ask Yellen to probe meatpacker JBS The Hill's Morning Report - Presented by Goldman Sachs - Biden rallies Senate Dems behind mammoth spending plan Mnuchin dodges CNBC questions on whether Trump lying over election MORE said the Trump administration is considering issuing "ultra-long" bonds beyond the traditional 30-year benchmarks, according to Bloomberg News.

“If the conditions are right, then I would anticipate we’ll take advantage of long-term borrowing and execute on that,” Mnuchin said in a Wednesday interview with Bloomberg, adding that he had held meetings on the possibility earlier in the day.


According to the report, Treasury first started considering bonds that would last for 50 or even 100 years as early as 2009, but the idea gained steam only recently.

Longer-term bonds could have a major impact on international bond markets, which often rely on U.S. Treasury bills as a baseline.

It would allow Treasury to borrow money for the long term at a time of low interest rates, an appealing prospect at a time when deficits are soaring. The deficit is on track to near $1 trillion this year, meaning the government will have to borrow to fill the budget hole. 

Countries such as Austria, Belgium and Ireland have already issued ultra-long bonds, and Swedish authorities said this week they were considering it as well.