Mnuchin is starting to sound more serious about the possibility of huge duration bonds. I can see this being a very interesting way to decrease capital demands for people that need to hold a certain amount of bonds/duration
Lets say I estimate I need to have 20% of my portfolio allocated to the 30y UST bond. With an 100y bond, I might be able to only allocate ~6-8% (or something along those lines), freeing up 13% in cash (but retaining the same duration exposure). I then can use that cash…