Yellen Gets Wall Street Buzzing About 50-Year U.S. Treasuries
- Biden’s pick for Treasury secretary was non-committal on topic
- Traders sold 30-year bonds in response, steepening yield curve
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All it took was a non-committal comment from Janet Yellen to persuade Treasury traders there’s a chance the U.S. will finally expand maturities in the world’s biggest bond market beyond 30 years.
The Treasury Department has pondered ultra-long bonds for years, but they’ve never been introduced in part because of resistance from Wall Street. But Yellen, President-elect Joe Biden’s pick for Treasury secretary, got people buzzing about them again by discussing the topic Tuesday during her Senate confirmation hearing. Markets responded, with traders selling 30-year bonds.