@KobeissiLetter•13 minuti fa
The US Treasury's reliance on short-term debt is rising:
US Treasury bills currently account for ~21% of marketable Treasury securities, near the highest since 2020, when federal borrowing surged during the pandemic response.
This is well above the 10-15% range seen from 2012 to 2019.
By comparison, the peak during the 2008 Financial Crisis was ~34%.
This comes as the US government has increasingly relied on T-bills, rather than longer-term notes and bonds, to fund its growing borrowing needs.
If the Treasury keeps issuing longer-dated debt at the current pace through FY2027, T-bills could account for ~25% of total debt, the highest since 2004, excluding 2008 and 2020.
However, this approach increases the government's exposure to short-term rate swings, making debt-servicing costs more vulnerable if interest rates remain elevated or rise again.
The US debt crisis is in full swing.
