MNI BRIEF: Treasury Not Planning To Lengthen Debt--Yellen

Treasury Secretary Janet Yellen said Tuesday the U.S. has no plans to lengthen the maturity of government debt before interest rates rise.

"Treasury has looked at this question and has no current plans to do that," Yellen said in testimony before Congress, in response to a question whether the U.S. would lengthen debt maturities. Former Treasury officials officials have told MNI the Treasury would be more likely to fund deficit spending at the front-end of the Treasury curve and avoid ultra-long bonds.

As the Biden administration considers another spending package focusing on infrastructure that reportedly could amount to USD3 trillion, Yellen said Tuesday that such spending will be on a 10-year horizon and will include tax increases such as raising corporate taxes to 28%. "We do need to raise revenues in a fair way to support the spending that this economy needs to be competitive and productive," she said.