The US Treasury Department will auction a 20-year bond in May for the first time since 1986, according to a WednesdayThe department is reopening the bond and increasing sizes of other issuances as it plans to borrow $3 trillion in the second quarter for rising stimulus costs.
The Treasury will initially offer $20 billion worth of 20-year notes at a May 20 auction, according to a Wednesday. Additional 20-year note auctions in June and July are anticipated, with each sale offering $17 billion of notes. The department first announced it would reopen its 20-year note on January 16 to fund the government's trillion-dollar deficit. The US budget shortfall has since soared as legislators work to pad the economy from a coronavirus-fueled collapse. The Committee for a Responsible Federal Budget projected on April 13 the deficit willThe Treasury expects to shift its issuance concentration from notes to longer-dated bonds for upcoming sales to better fund mounting debt.
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