The building of the Ministry of Finance of Safoto: Chip Somodevilla / Getty Images
USA deeper you go into debt — the Ministry of Finance announced the release of 20-year bonds in the first half of 2020. The announcement was published on the Agency’s website.
Detailed information about the conditions at the 20-year bond is not given. The Ministry of Finance announced that it will be made public on 5 February 2020. The last time the Ministry had issued such bonds in 1986.
By issuing 20-year bonds the Ministry of Finance plans to reduce the budget deficit, which by the end of 2019 calendar year exceeded one trillion dollars. The head of the Ministry of Steven Mnuchin said that the us government will look for other opportunities for borrowing.
Now the longest period of maturity of the outstanding bonds is 30 years. However, the fall of 2019, the U.S. Treasury reported that in 2020 may issue bonds with a maturity of 50 years. Also, the Ministry did not rule out issue 100-year bonds. However, this will happen only if 50-year bonds will be in demand.
US government debt in November of 2019 set a record, reaching 23 billion dollars. Before this, the us authorities warned that by 2049 the country’s public debt could reach “unprecedented levels” of 144 per cent of GDP.
Video, photo All from Russia.