Treasury Sees Need to Reissue 30-Year Bonds

To give you an idea of how bad the Federal budget deficit has gotten, the U.S. Treasury has decided to strongly consider bringing back the 30-year treasury bond. The 30-year was retired in 2001, the first year of President Bush’s term. The Treasury now says that with so much more debt needed to fund the government’s budget, they need to issue more, and bringing back the 30-year bond will help them do that. A final decision will be made in early August. Treasury bond rates have spiked higher on the news, as more supply will lessen demand, causing interest rates to rise.