Return Of The 30 Year Treasury Bond

[jeffrey]

The 30 year treasury bond (often called the "long bond") will make a comeback beginning next year in a move to help finance the national debt. It will also give investors a safe, longer-term investment option for their portfolios.

Originally sold beginning in 1977, the 30 year bond was discontinued in October 2001 when the government was producing a surplus budget. The longest maturity bond currently is a 20 year inflation indexed bond.




The 30 year bonds are favored by pension funds, insurance companies and other investors to help diversify investment portfolios and hedge risk. It's also predicted that the 30 year bonds will be popular with the retiring baby boomer generation which will be looking for a safe, longer-term investment for their retirement money.