Dollars and Jens
Thursday, January 15, 2009
treasury calls callable bonds from 1984
Press release (pdf) from the treasury announcing
The Treasury today announced the call for redemption at par on May 15, 2009, of the
13-1/4% Treasury Bonds of 2009-14, originally issued May 15, 1984, due May 15, 2014 (CUSIP No. 912810 DJ 4). There are $4,481 million of these bonds outstanding, of which $3,459 million are held by private investors. Securities not redeemed on May 15, 2009 will stop earning interest.

These bonds are being called to reduce the cost of debt financing. The 13-1/4% interest rate is significantly above the current cost of securing financing for the five years remaining to their maturity.
You don't say.

Update: More at Bloomberg.

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