Who is likely to buy 30-year Treasury bonds?
Jill Hershey, vice president for legislative affairs with the Bond Market Association trade group in Washington, D.C., believes consumers and institutional investors – pension funds, insurance companies, asset management firms – will be interested because U.S. government securities are known for “safety and soundness.” Institutional investors have lobbied for the Treasury to bring back the 30-year bond because it will help them match liabilities and assets, she said. For example, a pension fund may want to invest in long-term bonds to ensure that there will be enough money 30 years later to pay out to retiring workers. Consumers might be interested, too. “A 30-year-old worker might find it an attractive investment option,” Hershey said. “But for someone near retirement, it probably wouldn’t make as much sense.” Hershey said consumers can buy the long bonds in several ways. The Treasury’s sales Web site, www.treasurydirect.gov, lets consumers participate in auctions, or they can buy bon
