LONDON (Reuters) – The U.S. Treasury has a lot of debt to place in the next year, but its active management of the maturity profile shows why the oft-heralded U.S. debt “crisis” is unlikely to occur anytime soon.
Treasury funding math currently is quite daunting, with more than half a trillion dollars of bills and bonds under the hammer this week alone.
But almost three-quarters of this week’s deluge is in bills, which mature in 12 months or less, and these will roll over at progressively lower rates if U.S. interest rates decline as expected.
While huge weekly Treasury sales are by now familiar, many investors continue to circulate notes expressing concern about the mounting levels of government debt that need to find willing buyers.
Torsten Slok, the chief economist at Apollo Global Management, is the latest to warn of potential danger ahead with his “Top 10” list of…
