(Bloomberg) -- The long-end of the U.S. yield curve steepened after Treasury Secretary Steve Mnuchin said the government is seriously considering a plan to issue debt well beyond the current 30-year maximum.
The gap between five- and 30-year Treasury yields widened to 59 basis points, from 56 basis points just before the news broke late Wednesday. Mnuchin’s comments also drove the long bond’s yield up to 1.97%, reversing a decline that had sent it to a record low of 1.90% earlier in the day.
On Aug. 16, the Treasury Department revealed it was yet again mulling 50- and 100-year bonds, which would let the government lock in historically low rates for longer. “If the conditions are right, then I would anticipate we’ll take advantage of long-term borrowing and execute on that,” Mnuchin said Wednesday in a Bloomberg News interview in Washington.
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