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Treasury Reintroduces 30-Year Bond

In August of 2005, Treasury announced the reintroduction of the 30-year bond. Treasury will hold its first auction of the bond in five years on February 9, 2006. The last 30-year bond auction took place on August 9, 2001.

Bids for the auction may be placed through a broker or financial institution, or directly from Treasury through the TreasuryDirect and Legacy Treasury Direct systems. In TreasuryDirect or Legacy Treasury Direct, account holders can place non-competitive bids for 30-year bonds today.

The 30-year bond will diversify Treasury�s funding options and expand its investor base. The reintroduction of the bond will also stabilize the average maturity of the public debt. Before the reintroduction of the 30-year bond, the 20-year TIPS was the longest dated marketable security issued by Treasury.

The 30-year bond has long been a favorite of fixed income market participants seeking to match assets to future liabilities and it serves as an important benchmark by which other long-dated securities are measured.

Read more at the U.S. Treasury site

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