(MONEY Magazine) – The Treasury Department's recent announcement that it wants to buy back bonds as part of an effort to eliminate the federal debt may have some unforeseen implications. Sure, the move toward debt-free status promises benefits: budget surpluses, lower interest rates and more capital for the private sector. But less debt also means a shrinking supply of Treasury paper. What's a safety-seeker to do?

Since risk-averse investors will have fewer options, says University of Chicago economics professor Robert Z. Aliber, highly rated corporate bonds will become a popular alternative to ever-scarcer Treasuries. And in the unlikely event that we become completely debt-free? Without the traditional benchmark for weighing risk and return, a new standard will have to emerge. Amazon.com bonds, anyone?

--ETHAN JOHNSON