💵 Another $100B in T-bills hits the market
The U.S. Treasury is auctioning a record $100B in 4-week bills this week. Every sale pushes supply higher, and demand is being tested as deficits balloon.
🟡 Federal debt is now approaching $40T
🟡 The annual deficit is running near $2T
🟡 Short-term issuance is breaking records month after month
This is the quiet engine of markets: constant refinancing of short-term debt. It keeps liquidity moving today but compounds rollover risk tomorrow. The bigger the stack of bills, the more sensitive the system becomes to shifts in rates or demand.
Short-dated Treasuries may look “risk-free” on the surface, but they are also the canary in the fiscal mine.
