How Government Debt Auctions Set the Price of Borrowing episode artwork

EPISODE · Jun 10, 2026 · 9 MIN

How Government Debt Auctions Set the Price of Borrowing

from The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · host Fexingo

Episode 43 of The Fiscal Policy Podcast dives into the mechanics of government debt auctions, using the US Treasury's recent May 2026 ten-year note sale as a case study. Lucas and Luna explain how the auction process determines the interest rate taxpayers pay on the national debt, the role of primary dealers and indirect bidders, and what a high or low bid-to-cover ratio signals about market confidence. They also explore how the shift toward shorter-dated borrowing in 2025-2026 is raising rollover risk, and what the Treasury Borrowing Advisory Committee's latest report reveals about future debt management. A concrete breakdown of a process that moves trillions annually. #GovernmentDebtAuctions #USTreasury #TenYearNote #BidToCoverRatio #PrimaryDealers #IndirectBidders #TBAC #DebtManagement #FiscalPolicy #PublicSpending #Economics #InterestRates #RolloverRisk #AuctionMechanics #BorrowingCost #May2026 #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo

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How Government Debt Auctions Set the Price of Borrowing

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