Trump's circle is considering "ultra-long-term U.S. Treasury bonds" with a "50-year or 100-year term."
The Trump circle is considering issuing 50-year or 100-year "super bonds" to restructure U.S. government debt. With over $9 trillion in debt maturing in the next 12 months, the U.S. Treasury faces a rollover cliff. The Federal Reserve is operating at a loss of over $192 billion, and foreign demand for U.S. Treasury bonds is declining. This move could stabilize yields without the need for central bank monetization, delay a financing crisis, and exchange held U.S. Treasuries with trade partners
Informed media sources claim that discussions are underway within Trump's circle about issuing 50-year or 100-year "super bonds" to restructure U.S. government debt.
Netizens believe that over $9 trillion in debt will mature in the next 12 months, and the U.S. Treasury faces a steep rollover cliff under high nominal interest rates. Meanwhile, the Federal Reserve has incurred operating losses exceeding $192 billion over the past two years due to holding low-yield long-term assets while paying interest on reserves. Foreign demand for U.S. Treasury bonds is shrinking, and the Federal Reserve, under Powell's leadership, has consistently refused to directly control the yield curve. In this context, issuing 50-year or 100-year "super bonds" would serve as a covert way to stabilize yields without the need for central bank monetization at least for now, creating an illusion of fiscal stability and delaying a financing crisis.
It is worth noting that this aligns with the previously mentioned "Mar-a-Lago Agreement," where the U.S. might exchange lower tariffs for trade partners converting their holdings of U.S. Treasury bonds into 100-year bonds.
