Mnuchin says US to explore idea of longer-term bonds

Listen to this article

00:00
00:00

US Treasury secretary Steve Mnuchin said on Thursday that the US would consider the idea of selling debt at longer maturities than 30 years, calling the concept a “serious issue”.

Speaking in an interview on CNBC, Mr Mnuchin said staff at the Treasury will explore the idea of launching bonds with maturities of 50 – 100 years, but that it had not yet made a formal decision on the matter.

Ultra-long bonds have already become popular in Europe amid a period of historically low bond yields.

The $14tn US Treasuries market is the biggest and the most actively-traded in the world. The country has extended the average maturity of US bonds to five years and nine months by the end of 2016, from four years and seven months ahead of the financial crisis, according to Bloomberg data.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.