The invention provides an insulated wire having a conductor and an insulator of paste extruded PTFE fine powder around the conductor. The paste extruded insulator has at least one closed continuous longitudinal air channel spaced apart from the conductor. The invention further provides a process for forming an insulator around a conductor by paste extruding lubricated PTFE fine powder in an extrusion device comprising a die, mandrel, and at least one channel-forming member. The die and mandrel form a converging chamber leading to an extrusion orifice and the channel-forming member is positioned in the orifice. The mandrel has a central bore for supplying the conductor. Lubricated PTFE fine powder is forced through the chamber and out of the exit of the orifice as a lubricated green extrudate around the conductor forming an insulator with at least one closed longitudinal air channel spaced apart from the conductor.