By Martin Crutsinger
AP Economics Writer
WASHINGTON (AP) - The Treasury Department says its new 20-year bond, which it is introducing to help finance budget deficits projected to top $1 trillion over the next decade, will be offered on a quarterly basis in the months of February, May, August and November.
The Treasury Department said Wednesday that it still planned to begin auctioning the 20-year bond in the first half of this year but has not made a final decision on a date. Market analysts are expecting that the first auction will occur in May.
Treasury officials said they were considering a recommendation from primary bond dealers to auction the bonds in a range of $10 billion to $13 billion each quarter. Officials said they will announce the size of the auctions and further details in May.
Treasury announced last month that it was bringing back the 20-year bond, which it had last auctioned in 1986. The 20-year length was chosen after officials considered proposals for a 50-year or 100-year bond.
The government currently sells 10-year notes and 30-year Treasury bonds but is examining new ways to finance the government's soaring deficits.
The Congressional Budget Office last week estimated that the deficit this year will hit $1.02 trillion and will remain over $1 trillion annually over the next decade.
Published: Fri, Feb 07, 2020
