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U.S. Treasury Boosts Short-Term Bill Sales
The article focused on the U.S. Treasury Department's decision to intensify the issuance of short-term Treasury bills in July 2026, due to increased borrowing needs resulting from budget deficits and rising interest payments. In July alone, net Treasury bill issuances reached approximately $270 billion, surpassing expectations. Total issuances for 2026 are projected to reach around $827 billion, compared to $360 billion in 2025. Despite strong investor demand, experts warn against over-reliance on short-term debt, as it could expose the government to risks of higher borrowing costs when interest rates increase. This is particularly concerning given that more than 75% of the debt bears fixed interest rates for over two years, which reduces the impact of interest rate fluctuations on debt costs. While the government continues to rely on bills to fund its needs, there remains concern about limited financial options in the event of future crises, especially since the proportion of bills in total marketable debt is approaching 30%, a level some warn may constrain the government's financial flexibility.
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