“We seek to finance the government at the least possible cost to taxpayers over time and we will continue to evaluate other potential products to meet that need,” Treasury Secretary Steven Mnuchin said in a statement.
The statement said that Treasury had gathered feedback on potential new bonds from a large number of market participants. Based on that information it felt that there will be strong demand from investors for a 20-year bond.
The government currently sells 10-year notes and 30-year Treasury bonds. The Congressional Budget Office is projecting that the deficit, which has surged during the Trump administration, will top $1 trillion in the current budget year and remain above $1 trillion over the next decade.