WASHINGTON (Reuters) - The U.S. Treasury, faced with large budget deficits, said in a surprise move on Wednesday it is considering regular sales of 30-year bonds, which were suspended in 2001.
The Bush administration scrapped the long-dated security in late 2001 as a cost-saving move, saying it no longer needed the bond for the government's borrowing needs. The move also came during the fourth consecutive year of budget surpluses.
Many bond dealers were stunned by that decision, which some viewed as a move to lower long-term interest rates, although Treasury officials said that was not the case.
But after years of mounting budget deficits -- fueled by recession, a stock market collapse, the costs of war and tax cuts -- bond dealers began lobbying for reintroduction of the security to support the long end of the market.
I've never seen an actual T-bill--do they put portraits on them, as they do with currency? If so, the choice for the new thirty year issues is really too easy: