The Indicator from Planet Money Why the 30-year bond matters
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Jun 18, 2025 Dive into the intriguing world of the 30-year treasury bond, an important economic indicator with a rich history. Discover its origins dating back to World War I and its cultural ties to a Charlie Chaplin film. Learn why investor interest has surged recently, defying expectations and stabilizing interest rates. Explore the bond's legacy amid rising government debt and how it reflects trust in long-term investments. Unpack the evolving role of this 'long bond' in shaping future financial landscapes.
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Chaplin Promoted 30-Year Bonds
- Charlie Chaplin made a 1918 silent film called The Bond to promote 30-year government bonds during WWI.
- Despite the marketing effort, Liberty Bonds initially struggled to sell and one issue defaulted.
Early US Bond Issuance Practices
- Before WWII, the US government borrowed sporadically and issued various bonds without a set pattern.
- Long-term bonds like the 30-year were rare until after the war, when borrowing needs grew.
Why 30-Year Bonds Matter
- Short-term debt forced constant refinancing, causing Treasury headaches.
- Issuing 30-year bonds helped the government lock in long-term financing and attracted investors like pension funds.