New 20 Year Us Bond

Figure 1 shows the breakdown of outstanding us treasurys by maturity year as of may 2020 excluding the new 20 year bond.

New 20 year us bond. The us treasury announced it will issue a 20 year bond in the first half of this year seeking to take advantage of borrowing costs that have hovered around record lows in recent months. It is clear that there is a period of time in the 2030s where there is very little debt maturing. Government will begin issuing 20 year bonds in the first half of 2020 the treasury department said.

It said the new 20 year bond would be made. Department of the treasury today announced it plans to issue a 20 year nominal coupon bond in the first half of calendar year 2020. The new 20 year bond was chosen after officials considered proposals for a 50 year or 100 year bond treasury officials said in a statement thursday.

The 20 year treasury yield is included on the longer end of the yield curve. Washington the u s. The new 20 year bonds will probably draw more domestic buyers than global funds who tend to favor shorter maturities.

The government is using the new issue as a way to extend the maturity of its debt or pay off its bills. Trading economics members can view download and compare data from nearly 200 countries including more than 20 million economic indicators exchange rates government bond yields stock indexes and commodity prices. A mutual fund or etf composed of high quality corporate bonds may offer a higher yield than a 20 year treasury bond and it can also provide diversification benefits including low risk too.

Over the past several years treasury has explored a range of potential new debt products including 20 year 50 year and 100 year bonds as well as floating rate notes linked to the secured overnight financing rate all with the goal of. Auction of a 20 year bond for the first time since 1986 was met with strong demand.