U.S. States Won’t Join Century Bond Club Even If They Want To

The U.S. Treasury is considering whether to join a number of European governments that have embarked on a bond-market experiment by selling debt that doesn’t come due for a century. But don’t expect America’s state governments to follow suit. Even if they wanted to put off repaying their debts for 100 years, many states are prevented from doing so because of constitutional or statutory limits that impose a type of fiscal discipline. In California, the nation’s biggest municipal-bond issuer, the constitution bars the state from selling debt that matures after 50 years.

from FA News https://www.fa-mag.com/news/u-s--states-won-t-join-century-bond-club-even-if-they-want-to-51829.html