All of this could be done with minimal financial risk. And if successful, it opens the Treasury to broader and more creative ways to finance the federal government.

Expect current dealers to continue to push back against the idea of ultra-long bonds in the same way taxi drivers pushed back against ride-sharing apps. But the world of securities trading is rapidly moving away from dealer networks toward open platforms that offer more transparency and reduced trading costs.

Mnuchin has a historic opportunity to transform the world’s largest securities market in profound ways. He can reduce the burden on taxpayers and avoid re-finance risks for decades via ultra-bonds. He can also use these novel securities to introduce 21st century trading practices to this critically important market.

This article was provided by Bloomberg News.

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