The US Treasury Secretary Steven Mnuchin said the Government is “seriously considering” issuing a 50-year bond next year. He said in the CNBC interview that the Government is looking for cheaper and longer-term ways to finance its debt.
-This is something I have talked about over the last two years, it is something we are very seriously considering. We think there is some demand for it, he said.
For US the longest bond duration now is 30 years and this new 50-year bond would be called ultra bonds.
Regarding the bond demand in the financial markets, the European Central Bank announced today that they will start their asset purchase programme again in November. This means that the ECB will be buying 20 billion euros worth of bonds every month.