Will the US issue premium bonds in 2023? (Bonds with sale value much greater than face value)

Question

One workaround the US government could take to circumvent the debt ceiling is to issue premium bonds - bonds that pay a higher interest rate than normal and therefore can be sold for much more than the principal amount, which is what counts against the debt ceiling.

For background, see https://www.bloomberg.com/opinion/articles/2023-01-11/financial-engineering-the-debt-ceiling or https://www.slowboring.com/p/a-new-plan-to-get-around-the-debt.

Resolves YES if the US issues premium bonds in 2023, otherwise NO. Here premium bond will be defined as any bond that the US government sells for at least 150% of the principal amount. (Issuing coupon-only bonds would count as per this definition.)

For the purposes of this market, "bond" will include any debt instrument that is functionally a bond; what the Treasury names it doesn't matter - e.g. T-bills, T-notes, or T-bonds all count as bonds.

Manifold Markets · Accepted Answer

No — resolved on Jan 1, 2024 by Manifold Markets prediction market.