Remember how big a deal the government was making about not needing to sell 30 year treasuries. No more worries, Georgie & Company fixed that problem...
30-Year Bond Sold for 1st Time in 5 Years
Thursday February 9, 1:26 pm ET
By Martin Crutsinger, AP Economics Writer
Treasury Department Sells 30-Year Bonds for the First Time in Five Years
WASHINGTON (AP) -- The 30-year Treasury bond made a long-awaited return on Thursday to the delight of bond investors and a cash-strapped federal government.
The Treasury Department sold $14 billion of the bonds with a yield of 4.53 percent.
It marked the first sale of 30-year bonds since 2001 when they were discontinued in an era when the government was running large budget surpluses.
But now with the return of record deficits, the government has reintroduced the bonds, hoping to lock in interest payments at low rates for a longer period.
Private economists said that investors such as insurance companies and pension funds would benefit from being able to obtain a guaranteed rate of return over three decades while it will help the federal government at a time when it is facing record borrowing needs.
The Bush administration said Monday that it expects the deficit for the current year to hit an all-time high in dollar terms of $423 billion.
Treasury Department spokeswoman Brookly McLaughlin said the department was pleased with the results of the first auction.
"The issuance of the 30-year bond will benefit investors, the Treasury and the American taxpayer," she said.
Signatures are so yesterday!
