Via The Big Picture, take advantage of the panicked flight to treasuries to issue all the 3% long-term notes the market will bear:
Let’s hope President-elect Obama’s Treasury Department resists the urge to issue T-Bills, despite the microscopic current cost of doing so. Such a program would subject our nation to rollover risk in future years, and those who yesterday sought to actually pay Uncle Sam for the privilege of holding their capital while riding out the current storm won’t be there (at least not on the same terms) once the storm finally passes. No, the novel thing to do would be to issue as much long dated paper as the markets will stand. Locking in the lowest long term rates in more than five decades is the cheapest bill we can hand future generations. Issue 50 year bonds, even 100 year obligations if need be. Just let investors seeking safety, duration, etc. flock in droves to these low yields. Let them, at some point in the future, feel the opposite form of regret that Bill Gross is feeling right now. It may sound silly in this environment, but at some point investors will come to scorn Treasurys almost as much as they do subprime mortgages today.
– Jack McHugh