- The Washington Times - Wednesday, November 2, 2005


The new 30-year bond will debut Feb. 9, helping the U.S. Treasury to raise an estimated record $171 billion during the January-March quarter, the government announced yesterday.

The Treasury Department said the first 30-year bonds will be auctioned Feb. 9 and the total amount of bonds that will be sold will be announced Feb. 1. The government had announced in August that it was bringing back the 30-year bond, but it had not specified the date for the first auction.

Officials said in August they expected to raise between $20 and $30 billion each year with the bonds. Officials said yesterday that the 30-year bond will be auctioned twice each year.

The government began selling a 30-year bond in 1977, but it was discontinued in 2001, which turned out to be the last year that the government produced a budget surplus.

Since that time, the government has rung up record budget deficits, although the red ink for the budget year that ended Sept. 30 narrowed to $319 billion. While that was down from a record $413 billion set in 2004, it was still the third-largest deficit in history in dollar terms.

Government officials said Monday they anticipate needing to borrow $171 billion in the first three months of next year, which would be a record quarterly amount, surpassing the old record of $146 billion set in the January-March quarter of 2004.

In its announcement yesterday, the government said it would auction $18 billion in three-year notes next Tuesday and sell $13 billion in five-year notes on Wednesday and $13 billion in 10-year notes on Thursday of next week.

The government also said that to make room for the 30-year bond, it would move the five-year note auction in February to later in the month.

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