franckreporter/iStock via Getty Images
Former U.S. Secretary of the Treasury Steven Mnuchin said that the 20-year Treasury bond (US20Y) — which he brought back to life in 2020 under Trump’s administration — should be killed.
Mnuchin told Bloomberg News that, although it made sense at that time, he would not keep issuing the 20-year bond today because it is too costly to the taxpayers.
The 20-year Treasury bond (US20Y) remains at yields that are higher than the 10-year (US10Y) and the 30-year (US30Y) yields: at 4.32, 3.95, and 4.23 respectively.
Since its re-introduction four years ago, the 20-year bond (US20Y) has taken on about $2B in yearly interest expenses more than what the U.S. government should have paid otherwise, amounting to $40B over its lifetime.
The U.S. government deficit is almost at $2T, double what it was about five years ago.