US Treasury Extends Debt-Issuance Guidance to Mid-2027; T-Bill Share Could Hit 25%

The US Treasury said on Aug. 5 that it will hold auction sizes steady for nominal coupon securities and floating-rate notes, extending a forward issuance guidance that has been in effect since early 2024 to mid-2027. Treasury Secretary Scott Bessent announced the decision as part of the quarterly refunding program, keeping the current auction calendar intact. Bank of America analysts estimate that, if the guidance remains unchanged, T-bills could account for nearly 25% of outstanding debt by the end of fiscal 2027, the highest level since 2004. The decision also carries implications for digital assets. Stablecoin issuers such as Tether and Circle, whose reserves sit mainly in short-term Treasuries and reverse repos, would have a larger pool of eligible reserve assets. However, a shorter-dated debt profile makes government refinancing more sensitive to policy rates. Should the Federal Reserve resume hiking, rollover costs could rise quickly. CryptoBriefing reported the analysis.