US Treasury to Stick with Bill Sales, Ditch Long-Term Debt for Now

The US Treasury Department announced on November 5, 2025, that it would maintain steady sales of notes and bonds for at least several quarters, citing the higher cost of issuing longer-dated securities compared to bills. This decision will see the government increasingly rely on bills to fund the budget deficit. According to the quarterly refunding statement, the department anticipated keeping auction sizes unchanged for nominal notes, bonds, and floating-rate notes. This language, which has been used since early last year, reflects the department's strategy to manage its debt obligations. The US Treasury's decision is expected to have a significant impact on the financial markets, as it will influence the yield curve and interest rates. In the past quarter, the US Treasury sold $144 billion in notes and bonds, with an average yield of 3.23%. The department's decision to maintain steady sales will likely keep interest rates stable, at least in the short term. However, this may have implications for the economy, as higher interest rates can slow down economic growth. The US Treasury's reliance on bills to fund the budget deficit is a result of the higher cost of issuing longer-dated securities. Bills, which mature in up to a year, are considered a lower-risk investment compared to notes and bonds, which have longer maturities. The department's decision to prioritize bills over notes and bonds is a strategic move to manage its debt obligations and minimize costs. The US Treasury's quarterly refunding statement is a crucial indicator of the government's debt management strategy. The department's decision to maintain steady sales of notes and bonds will influence the financial markets and have implications for the economy. As the US Treasury continues to navigate the complexities of debt management, investors and analysts will closely monitor the department's decisions and their impact on the financial markets. In the coming quarters, the US Treasury's decision to maintain steady sales of notes and bonds will likely have a stabilizing effect on the financial markets. However, this may also have implications for the economy, as higher interest rates can slow down economic growth. As the department continues to manage its debt obligations, investors and analysts will closely monitor the US Treasury's decisions and their impact on the financial markets. The US Treasury's decision to maintain steady sales of notes and bonds is a strategic move to manage its debt obligations and minimize costs. As the department continues to navigate the complexities of debt management, investors and analysts will closely monitor the US Treasury's decisions and their impact on the financial markets. The department's reliance on bills to fund the budget deficit is a result of the higher cost of issuing longer-dated securities, and this decision will likely have a significant impact on the financial markets in the coming quarters.