[U.S. Debt Risk Surges, Shifting to Short-Term Treasury Bills to Meet Growing Borrowing Needs] BlockBeats News, August 16: The U.S. Treasury's reliance on short-term debt is increasing. Currently, Treasury bills account for 21% of the tradable Treasury securities market, a level close to the highest since 2020, when federal government borrowing surged in response to the pandemic. This figure is significantly higher than the 10-15% range observed between 2012 and 2019. By comparison, during the 2008 financial crisis, this proportion reached approximately 34%. At the same time, the U.S. government is increasingly relying on short-term Treasury bills to meet its growing borrowing needs, rather than long-term bonds. If the U.S. Treasury continues issuing long-term debt at the current pace through fiscal year 2027, Treasury bills will account for 25% of total debt, the highest proportion since 2004. However, this approach increases the government's exposure to short-term interest rate fluctuations. If rates continue to rise or spike again, the cost of debt repayment will become increasingly unsustainable. The U.S. debt crisis is unfolding in full force. [Original Link]