US: heading for $1,000 billion in new debt by 2027
The United States will borrow approximately a further $1,070 billion (excluding funds raised to repay maturing debt) through the issuance of short-term Treasury bills in the financial year ending in September 2027. This is the estimate from Bank of America, as reported by the Financial Times
According to forecasts by Bank of America, as reported by the Financial Times, the United States will borrow, through the issue of short-term Treasury bills, approximately a further $1,070 billion (excluding funds raised to repay maturing debt) in the financial year ending in September 2027.
JPMorgan, on the other hand, forecasts a Treasury bill issue of $1.09 billion in 2027, whilst Goldman Sachs estimates a total of $961 billion.
The Financial Times points out that this trend is part of a growing reliance on short-term debt, which leaves Washington vulnerable to rising interest rates. The growing focus on bonds maturing in one year or less comes at a time when long-term borrowing costs in the US have reached their highest level since 2007, due to rising public debt, heavy corporate borrowing to fund the artificial intelligence boom, and economists’ expectations of economic growth.
