U.S. Bonds Hit Market For 1st Time Since 1986

THIS U.S. BOND WILL HIT MARKETS FOR THE FIRST TIME IN DECADES BECAUSE OF THE BUDGET DEFICIT

(CNN) – What’s old is new again in the U.S. bond market.

The U.S. Treasury has a solution to the deficit, other than just printing more money.

It is bringing back a bond it hasn’t been issued since 1986.

The U.S. Treasury has announced it will issue a new 20 year bond in the first half of 2020.

Treasury Secretary Steven Mnuchin surprised investors with the announcement last week.

The U.S. deficit surpassed one trillion dollars in 2019 for the first time since 2012.

Mnuchin says bonds are a way to finance the government at the least possible cost to taxpayers over time.

The new 20-year bond is likely to appeal to pension funds or insurance companies.

Industry analysts say the treasury needs a new source of financing to meet future deficit needs.

Categories: US News