https://www.washingtonpost.com/business/why-us-ponders-going-long-on-methuselah-debt-quicktake-qanda/2019/08/30/f2a017ae-cb54-11e9-9615-8f1a32962e04_story.htmlWhy U.S. Ponders Going Long on ‘Methuselah’ Debt: QuickTake Q&A
Is it time to call Methuselah? U.S. Treasury Secretary Steven Mnuchin is pondering issuing ultra-long term debt maturities as a new way to finance the government’s agenda. Treasury is revisiting the idea as long-term yields have breached record lows. Mnuchin had floated a similar notion in 2017, when it was set aside after receiving a cold reception from Wall Street investors and the borrowing committee of bond dealers that meets quarterly with Treasury to advise it on debt management. In some ways the question comes down to this: In the long run, will the government save the most money by borrowing as cheaply as it can, or as predictably?
