FYI: Global bond markets were roiled at the end of 2016 with higher rates and a re-steepening of the
yield curve. The interest rate sell-off occurred during a change in global inflation expectations as
discussions regarding deficit financing, infrastructure spending, and fiscal stimulus took center stage
at a time when labor markets were generally considered tight given current low unemployment levels.
The recently confirmed Secretary of Treasury, Steven Mnuchin, indicated that he would: 1) look to
extend the average maturity of Treasury’s portfolio beyond the already rapid extension that took
place from 2009 onwards; and 2) possibly review the issuance of a 100-year bond as an instrument
used to achieve that maturity extension
Regards,
Ted
https://www.gmo.com/docs/default-source/research-and-commentary/strategies/fixed-income/developed/the-100-year-a-take-on-the-century-bond.pdf
