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.
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