Washington intends to issue twenty-year bonds and increase the number of securities auctions over a range of maturities in order to raise money to meet the record-breaking needs of government loans caused by the coronavirus pandemic.
On Wednesday, May 6, according to the US Treasury.
“In light of the significant increase in borrowing requirements, the Treasury plans to increase its long-term emissions as a reasonable means of managing the repayment profile and limiting potential volatility of emissions in the future,” said Assistant Secretary of the Treasury Brian Smith.
Earlier, the Ministry of Finance has already announced that it intends to borrow almost $ 3 trillion in the second quarter of this year. This is five times the previous record set during the 2008 financial crisis. In this regard, the Treasury will offer 20-year bonds with an initial volume of $ 20 billion. The first auction will be held on May 20.