US Government Borrows $800 Billion In 3 Months
The US government has borrowed over $800B in the last three months. This is a gargantuan sum of money that annualizes to ~$3.2T. This is an astonishing amount of money given the economy is not technically in recession. If there is an even a minor bump in the economy, the government spending will have to increase which is going to drive this number even higher.
Note: Non-Marketable consists almost entirely of debt the government owes to itself (e.g., debt owed to Social Security or public retirement)
Figure: 1 Month Over Month change in Debt
Due to the massive debt issuance, the treasury is relying Bills (short-term debt) more and more. The appetite for long term debt is simply not big enough. You can see how the trend has changed over time. In the early 2010s the bulk of debt issuance was in Notes (2-10 years). Even in 2025, Notes made up a substantial portion. However, in 2026 you can see that Bills are making up an ever-larger portion of the total debt issuance.
One good piece of news is that the Treasury has strengthened their cash position to $1T.
The chart below shows both the maturity of the debt and average interest rate. The blended interest rate has stabilized around 3.1%. More concerning is the average maturity of the debt is now around 5.9 years. Lower average maturity means the government will have to roll over more debt each year. It increases the risk for...(READ THIS FULL ARTICLE 100% FREE HERE).