Veteran Bond Analyst Stands by Call for More 30-Year Treasuries

Lou Crandall is sticking with his call that
the U.S. is about to increase the amount of 30-year bonds it
sells as a prelude to adding a new ultra-long maturity.
The prediction came in the latest version of Crandall’s
weekly report on U.S. Treasury finance, The Money Market
Observer, which has been landing on clients’ desks every Monday
for almost 40 years. This week’s edition lit up his phone and
email box.

The chief economist at Wrightson ICAP in Jersey City, New
Jersey, forecast that the Treasury Department, which at 8:30
a.m. in Washington on Wednesday will announce the sizes of the
next batch of quarterly auctions, will boost 10-year note and
30-year bond sales by $2 billion apiece. He sees the move as
laying the groundwork for the Trump administration’s eventual
introduction of a new, ultra-long security