TBAC warns of ~$1.45 trillion US financing gap in FY2027-2028 if auction sizes maintained

The Treasury Borrowing Advisory Committee warned that if current Treasury auction sizes are maintained, the US government could face a roughly $1.45 trillion financing gap in fiscal years 2027-2028. Treasury Secretary Scott Bessent has been financing the ~$2 trillion annual deficit primarily through short-term bills to lower borrowing costs, but this increases refinancing and interest rate risk.

Detected & updated continuously · Source: Nebula