U.S. TREASURY SAYS NO PLANS FOR SPECIAL BONDS
A Treasury official said there are no
plans to try to reduce the U.S. budget deficit by issuing
yen-denominated bonds that would become known as "Reagan bonds."
    "It simply isn't something that we are planning to do," the
official said.
    He added the Treasury was aware of Japanese news reports
suggesting the Reagan administration might issue such bonds as
the former Carter administration did when it sold "Carter bonds"
denominated in West German marks.
    But he said the situation was greatly different now.
    "If you look at the differences between the treasury market
now and in the Carter administration years, it is a much more
global market now," the official said.
    "There was not the same ease then for the holder of another
currency to buy other countries' securities," he added, "But
there is no difficulty now for them to purchase dollars and buy
U.S. securities."
    The United States needs dollars, not Japanese yen, to pay
its debts and reduce the deficit and so has no plans to issue
yen-denominated bonds, he emphasized.
 Reuter
