Why Treasury Is Stuck Borrowing at the Front of the Curve

The U.S. Treasury now issues more short-term debt than at any point since the financial crisis. Lucas and Luna explain why the government is effectively borrowing on a credit card — issuing bills with maturities under one year to fund long-term spending. They break down the mechanics: the Treasury's cash management problem, the role of the debt ceiling, and what happens when 3-month yields stay above 3.6 percent while the 30-year sits at 5 percent. Using June 2026 data, they show how the ratio of bills to total marketable debt has climbed past 22 percent, and why that creates rollover risk for every new auction. This episode connects the yield curve's front-end dynamics to a deeper question: how long can the fiscal system run on short-term funding before the market demands a premium? #TreasuryBorrowing #ShortTermDebt #NationalDebt #YieldCurve #TBill #3MonthYield #FiscalPolicy #DebtManagement #TreasuryAuctions #BondMarket #FederalDebt #Economics #MacroEconomics #FiscalOutlook #FexingoBusiness #BusinessPodcast #EconomicsPodcast #LucasAndLuna Keep every episode free: buymeacoffee.com/fexingo