Tuesday, May 15, 2012

100-Year Bonds on the Horizon?

Plans for new 50- and 100-year bonds might be in the works. What could derail them?

Homebuyers may not be the only ones trying to lock in low borrowing rates—even the U.S. government may be on the hunt for cheap money. Two developments in March 2012 caused some to speculate that the Treasury is closer to issuing bonds with maturities greater than 30 years to “lock in” low rates. How likely is this to happen, and if so, what are the potential implications?

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