In its campaign to shift more of the federal debt into medium-and long-term bonds, the Treasury last week announced the biggest refinancing operation in its history. To holders of five issues of nearly mature securities totaling $21 billion, the Treasury offered a new seven-year-and-nine-months bond at 2%. Since this is slightly above the highest rate on the old issues, the Treasury hopes that many security holders will exchange their holdings for the new issue instead of demanding cash. The Treasury also offered a new one-year 1⅜% certificate in exchange for the short-term securities.
Neither of the two new issues will be sold...
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