🔥🔥The U.S. Treasury market is changing
First look: Treasury issuance is booming, approaching wartime scale
Since 2020, the issuance of U.S. Treasury bonds has risen sharply, almost reaching a level that can only be seen in wartime. This phenomenon reflects the radical fiscal stimulus measures taken by the U.S. government to cope with economic difficulties, and has also caused widespread market concerns about the health of the country's finances.
Re-exploration: High-interest short-term debt replacement, rising calls for interest rate cuts
In 2023, the U.S. Treasury Department adopted a strategy of replacing high-interest one-year short-term debt with low-interest ten-year long-term Treasury bonds. This move is not only to meet the government's short-term funding needs, but also a strong hint of the Fed's expectation of a rate cut. If the Fed fails to cut interest rates in time, the high interest burden brought by the new maturity replacement may put the U.S. Treasury in trouble.
Deep thinking: high debt, the reason why inflation is difficult to solve
The deep-seated reason for the continued high inflation in this round of the United States can be attributed to the excessive expansion of government debt. The increase in debt has led to an expansion of the money supply, which in turn pushed up the price level. Therefore, to truly solve the inflation problem, we must start with controlling the scale of government debt and achieve a sound and sustainable fiscal policy. $BTC $DOT $STX
