Treasury Secretary Scott Bessent continues to refuse Wall Street suggestions to change guidance on future Treasury note and bond sales, dealers indicate. Yields on 30-year bonds hit their highest levels since 2007 last week, making any increase in bond sales unlikely in coming years. The federal budget deficit is expected to remain around $2 trillion, creating growing borrowing needs, while JPMorgan Chase forecasts a funding gap starting in fiscal 2027 with a cumulative shortfall of $3.7 trillion between 2027 and 2030. In this context, Treasury is relying mainly on short-term bills for its borrowing needs, with their share of outstanding debt expected to reach nearly 25% by fiscal 2027.
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