What Would It Cost to Issue 50-year Treasury Bonds?

Jens Christensen, Jose Lopez and Paul Mussche

FRBSF Economic Letter, 2021, vol. 2021, issue 29, 05

Abstract: The longest-term U.S. Treasury bonds that investors can buy mature in 30 years. Some other countries offer up to 50-year government bonds. Examining these foreign bond markets and extrapolating U.S. Treasury yields to evaluate such longer-term options suggests that the extra costs of introducing 50-year bonds relative to conventional 30-year bonds are likely to be small on average. Because the U.S. fiscal deficit remains substantial, such longer-term debt instruments could provide an attractive opportunity to finance the growing debt in a sustainable way.

Keywords: United States treasury bonds; federal debt (search for similar items in EconPapers)
Date: 2021
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