The U.S. is looking at issuing 50-year bonds next year to expand the government's borrowing capabilities amid an environment of low interest rates, Treasury Secretary Steven Mnuchin said.
"This is something I have talked about over the last two years, and it is something we are very seriously considering," Mnuchin told CNBC in an interview. "We think there is some demand for it."
When asked whether the government could issue enough long-term debt to make a difference in borrowing costs given that rates are already low, Mnuchin said the government will look at what would be the spread of the 50-year debt to 30-year bonds. The U.S.'s longest-dated government bonds mature in 30 years.
At The New York Times' DealBook summit in Washington, D.C. on Sept. 12, Mnuchin said the U.S. government could also consider issuing 100-year bonds if the potential 50-year bonds succeed.
Mnuchin's comments come as President Donald Trump tweeted Sept. 11 that the U.S. should consider refinancing its own debt while calling on the Federal Reserve to cut the interest rates to "zero or less." The rate-setting Federal Open Market Committee will meet Sept. 17-18.
Last month, U.S. officials discussed the potential issuance of ultra-long bonds though the Treasury chief denied that the idea was inspired by the recent drop in yields on shorter-term U.S. debt.
