Mnuchin’s Ultra-Long Bond Idea a Real Longshot

The video discusses the concept of ultra long bonds, highlighting their attractiveness due to low interest rates and the potential for predictable government budgets over decades. It addresses challenges such as market predictability and the need for a secondary market. The importance of predictability for the Treasury is emphasized, given the size of the market. The idea of long bonds has been considered by various administrations, including the Trump administration, but has faced challenges in implementation.

What challenges might arise from the US auctioning long-duration maturities?

What are the advantages of issuing very long bonds for the government?

How does the current average maturity of the government's portfolio compare to historical levels?

Why is predictability in debt issuance important for the Treasury?

What has been the historical context of the discussions around issuing long-term bonds?