Wall Street expects US to issue about $1tn of short-term debt as borrowing costs climb
Growing reliance on Treasury bills comes as Scott Bessent seeks to curb rise in long-term rates
Source: Financial Times
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DW NOTE
Bessent is trying to hold down long-term rates by flooding the market with T-bills instead of 10-years and 30-years. The theory: short-term paper won't spook bondholders the way a wave of long-dated issuance would. The reality: you still have to refinance $1 trillion of debt every few months, and the Fed just raised rates into a 4.94% 10-year. This isn't debt management — it's a maturity mismatch funded by the hope that inflation goes away before the bills come due.