FYI: It cost the U.S. government more than $264 billion in 2016 to service its outstanding debt, currently approaching $20 trillion, according to the Treasury Department.
Those costs, a rise in interest rates and expectations for massive debt-funded fiscal spending in a Donald Trump administration have prompted some analysts to revisit the question of how best to manage financing costs. Should the government issue longer-dated bonds or, in fact, shorten the average maturity in its debt portfolio?
Issuing 50-year Treasury bonds might help the U.S. juggle its infrastructure spending, and could be beneficial for pension funds and insurance companies hungry for income. But for U.S. tax payers, it’s an unnecessary burden, according to some analysts.
Regards,
Ted
http://www.marketwatch.com/story/should-the-us-roll-out-a-50-year-treasury-bond-2016-12-13/print
