With the U.S. facing a $12 trillion deficit over the next decade, the Treasury Department is exploring ways to maintain robust demand for American debt.
One option being considered is the sale of “ultra-long-term bonds” with maturities of 40, 50 or even 100 years.
Writing at Bloomberg, bond strategist David Ader says that the average maturity of U.S. debt – 5.75 years, or 69 months – is low compared to its peers, and with 30-year Treasury bonds below 3 percent, this could be a good time to start issuing long-term debt.
