The U.S. governments intention to do this was ignored by Wall Street.

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 The U.S. governments intention to do this was ignored by Wall Street.


Reference News Network reported on August 25 that the U.S. government intends to issue 50-year or even 100-year century bonds, but the idea has been ignored by Wall Street.

According to Taiwans Business Times on August 21, following the recent plunge in U.S. bond yields to decades lows, the U.S. Treasury Department last week abandoned the idea of issuing longer-dated Treasury bonds than the current 30-year period, intending to test market interest in super-long bonds again.

Reported that this move will enable the United States to join Austria, Belgium and Ireland in issuing century bonds. As investors scramble for bonds with relatively high yields and low risks, the price of ultra-long bonds soars.

Reported that last weeks 30-year U.S. Treasury yields fell below 2% for the first time, which also led to nearly a quarter of the worlds bond yields issued by government and corporate bonds have become negative.

Peter Zier, head of Academy Securitiess macro strategy department, said it was too late to issue super-long-term bonds in this environment, although it was a great idea. He said that many companies in the United States and around the world have extended bond maturity in an attempt to lock borrowing costs down.

Reported that other strategists also believe that the Treasury Departments proposed century bond practices will not be able to smoothly advance. Steven Mnuchin, the US Treasury secretary, asked for a report on such bond schemes two years ago, when he concluded that investor demand for US debt over 30 years was not significantly strong. Mark Kabana, interest rate strategist at Bank of America Merrill Lynch, points out that although it has been two years, there has been no real change in market demand.

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