Tuesday, August 09, 2005

30 Year Treasury Bond

From the New York Times:

The U.S. Treasury's 30-year bond, long the benchmark of the world's credit markets, is back. The first new 30-year bond will appear in February, a little more than four years after the last bond was sold, according to the Treasury Department.

Analysts believe that the 30 year bond, which is expected to bring $20 to $30 billion to the government during the first year, will not only be another tool to fund the upcoming deficits, but also provide assistance to the country's barely solvent pension system.

The bond is considered an adjustment to the future, as foreign investors are anticipated to buy less U.S government bonds. It also provides a safe, longterm investment for individuals.

Wouldn't it be great if the treasury introduced an 100 year bond? The United States is probably the only nation that could. You'd buy the bond for $1000 today and 100 years from now, assuming you can't pick up the check yourself, your closest heir would get a nice suprise in the mail. Anybody who knows they have one of those coming immediately becomes a strong opponent of inflation.


At 8:40 AM, Anonymous Anonymous said...

shouldn't the coupon be compensation for the inflation?


Post a Comment

<< Home

Free Counter
Web Site Counters Who Links Here Listed on BlogShares