Debt Maturity

The Grumpy Economist: Debt Maturity.  Excellent financial advice for the US Treasury Department concerning the importance of taking advantage of (historically) low long term interest rates by lengthening the maturity structure of the federal government’s massive debt.  As University of Chicago finance professor John Cochrane notes, “Our Government has taken the opposite tack. When you include the Fed (The Fed has bought up most of the recent long-term Treasury issues, in a deliberate move to shorten the maturity structure) the US rolls over about half its debt every two years.”

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