WASHINGTON -- The Treasury Department said Thursday that it will redeem $4.6 billion worth of 30-year, high-interest rate Treasury bonds before they mature, which will save the goverment millions in interest payments.
The "callable" bonds were issued May 15, 1979, carry an interest rate of 9 1/8 percent and mature on May 15, 2009. Securities not redeemed by that date stop earning interest. Treasury said it is redeeming the bonds to reduce its cost of financing the nation's debt. The department estimates savings of around $544 million.
Of the the $4.6 billion of the bonds outstanding, $3.1 billion are held by private investors.
The department's last bond call was announced in July, also for a crop of older high-interest rate 30-year bonds. Those bonds were to be redeemed by November.
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