Treasury skewed strongly toward short term (2, 5, 7-year) maturities during the Obama administration, ostensibly to take advantage of historically low rates for bonds with such short terms, but ultimately shamefully because of the screamingly obvious risk that the rates for all new bond issuances (including 10, 15 and 30) would at some point in the near future revert to historical norms, leaving the federal government having to spend an obscenely huge and annually growing fraction of its revenue on interest payments on the national debt.
Grownup Trump knows better than to leave his beloved countrymen in the lurch upon his departure from office in January 2025. Interested to see how Treasury proceeds with this plan. Seems wise but to gain maximum value out of the initiative we should probably pair it with an equally innovative mechanism to force fiscal sanity upon the spending side of the ledger. I’d say “good luck with that” but Trump does tend to surprise...
Providentially, such ultra long term bonds will also help to lock in the dollar as the world’s reserve currency while helping to raise interest rates by sopping up liquidity.