US Government Sold $638 Billion of Just T-Bills this Week, 10-Year Treasury Yield Dips after Big Kahuna Yen Intervention
Treasury bills outstanding ballooned by $1 trillion year-over-year, to $7 trillion. But total marketable Treasury securities ballooned by $2.5 trillion. So...
Source: Wolf Street
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DW NOTE
The Treasury sold $638 billion of bills in one week while total marketable debt grew by $2.5 trillion year-over-year — meaning half the new borrowing went into instruments longer than a year. That's a bet rates stay low enough to make the carry tolerable. With CPI at 3.53% and the Fed at 3.5%, real yields are essentially zero. The government is rolling a $7 trillion T-bill tower at break-even while locking in longer duration. If inflation doesn't fall or the Hormuz reopening falters, that duration is a liability, not a hedge.