US National Debt has increased by $715 billion since July 1 while the 10-Year Treasury yield has jumped from 4.48% to 4.75%.
Washington’s solution?
Increase buybacks of longer-dated Treasuries to $4 billion.
But swapping longer-maturity debt for shorter-maturity debt doesn’t solve the underlying problem: we’re still borrowing at an alarming pace.
Until that changes, the upward pressure on rates will remain.
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