Treasury's Reliance on Short-Term Debt Amid a Hawkish Fed Poses Risks
The U.S. Treasury is heavily relying on short-term debt to manage its $39 trillion in obligations, exposing it to rising interest rates if the Federal Reserve continues tightening monetary policy. About 85% of recent debt issuance has been in the form of Treasury bills maturing within a year or less, with 20% of outstanding federal debt due in four months and expected to rise to 33% within one year.
Topics: Debt Management Fed Policy Interest Rates U.S. Treasury