Global governments are aggressively moving toward short-term borrowing: The average maturity of world government bonds has declined to 8.8 years, the lowest since 2014. The average maturity has declined by -1.5 years since 2021 as countries are relying more heavily on bills to fund widening deficits. This shift has been particularly driven by the UK, Japan, and the US, which have reduced long-dated bond issuance as demand has weakened. The UK has cut sales of long-term bonds to an all-time low this year, while Japan is boosting short-term borrowing after a steep drop in appetite for its super-long bonds. Furthermore, the Bank of England and Bank of Japan are continuing their quantitative tightening programs (QT), effectively reducing holdings of long-term debt. Overall, these strategies leave governments far more exposed to short-term rate volatility, potentially driving interest costs higher if central banks raise rates. Government borrowing is out of control.(The Kobeissi Letter)