US $1.45T Funding Gap

Analysts at JPMorgan Chase warned of a potential shortfall in U.S. government debt financing as fiscal years 2027 and 2028 approach. The gap could reach $1.45 trillion if auctions of long-term bonds and Treasury bill issuance remain at current levels. The shortfall reflects rising debt and budget deficits, along with more bonds coming due, while the Federal Reserve is reducing its holdings—making the Treasury more reliant on private-sector investors.

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