The US Treasury is leaning more heavily on short-term debt, with Treasury bills now making up 21% of the market for marketable Treasury securities, according to BlockBeats. That level is close to the highest seen since 2020, when federal borrowing jumped during the pandemic. It also stands well above the 10% to 15% range recorded between 2012 and 2019. For comparison, the share reached about 34% during the 2008 financial crisis.
At the same time, the US government is relying more on short-dated Treasuries to meet growing borrowing needs instead of turning to longer-term bonds. The report said that if the Treasury continues issuing long-term debt at the current pace through fiscal 2027, Treasury debt would account for 25% of total debt, the highest proportion since 2004. The report also warned that this approach leaves the government more exposed to swings in short-term interest rates. If rates keep rising or move higher again, debt-servicing costs could become harder to bear.
The US Treasury is becoming more dependent on short-term debt. Treasury bills now account for 21% of the market for marketable Treasury securities, BlockBeats reported on Aug. 16. That share is close to the highest level seen since 2020, when US federal borrowing surged during the pandemic.
The figure is well above the 10% to 15% range seen between 2012 and 2019. During the 2008 financial crisis, by comparison, the share climbed to about 34%.
At the same time, the US government is relying more heavily on short-term Treasuries to meet growing borrowing needs rather than long-term bonds. The report said that if the Treasury continues issuing long-term debt at the current pace through fiscal 2027, Treasury debt will account for 25% of total debt, the highest level since 2004.
That approach increases the government's exposure to short-term interest-rate swings. If rates continue to rise or move higher again, debt-servicing costs will become harder to sustain. BlockBeats said the US debt crisis is now breaking out on a broad front.
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