What Would It Cost to Issue 50-year Treasury Bonds?

Christensen, Jens H. E.; Lopez, Jose A.; Mussche, Paul

Journal Article

What Would It Cost to Issue 50-year Treasury Bonds?

Abstract: The longest-term U.S. Treasury bonds that investors can buy mature in 30 years. Some other countries offer up to 50-year government bonds. Examining these foreign bond markets and extrapolating U.S. Treasury yields to evaluate such longer-term options suggests that the extra costs of introducing 50-year bonds relative to conventional 30-year bonds are likely to be small on average. Because the U.S. fiscal deficit remains substantial, such longer-term debt instruments could provide an attractive opportunity to finance the growing debt in a sustainable way.

Keywords: United States treasury bonds; federal debt;