Wednesday, August 03, 2005

That Didn't Last Long

Treasury to sell 30 yr. bonds again.

WASHINGTON (AP) -- The Bush administration announced Wednesday that it is bringing back the 30-year Treasury bond next year, a move that would help finance the national debt and should hold appeal for investors looking for a safe, longer-term investment option in their portfolios.

The Treasury Department said the first auction of the 30-year bond will take place in the first quarter of 2006, with auctions held twice a year.

Treasury Secretary John Snow said the decision to revive the bond was based on "our commitment to prudent debt management and our desire to maintain cost-effective and diversified portfolios."

The United States stopped selling the "long" bond in October 2001, which turned out to be the last year the government produced a budget surplus. After that, though, it has racked up record amounts of red ink, helping to push up the national debt, which now stands at $7.8 trillion.

...barry provides more context.