Some government securities are sold as callable, some are not:
Treasury bills, notes, and bonds cannot be redeemed before maturity unless, by the terms of their issue, they are callable. Some Treasury bonds issued before 1985 are subject to call by the Treasury Department before their final maturity. If called, these bonds stop earning interest on the date called. The details of each issue of bills, notes, or bonds are announced before the Treasury's auction.
publicdebt.treas.gov
If they are callable, it is announced upfront. Most bonds are not callable, as I understand it. Unless one understood what one was getting, calling is undesirable, and would harm the fiscal reputation of the US government. Therefore, I think my scenario, though subject to modification, is pretty sound....... |
