[Wall Street Expects U.S. to Net Borrow $1 Trillion in Short-Term Debt Over the Next Year, Raising Rollover Risk] BlockBeats News, September 21: Bank of America, JPMorgan Chase, and Goldman Sachs predict that the U.S. will net borrow approximately $1 trillion through the issuance of short-term Treasury bills over the next year. As yields on long-term U.S. Treasury bonds rise to their highest levels since 2007, the Treasury Department's increased reliance on short-term debt also means that financing costs are becoming more sensitive to interest rate changes. Bank of America estimates that the U.S. will net borrow approximately $1.07 trillion in short-term debt in the next fiscal year ending September 2027. JPMorgan Chase projects total issuance for 2027 at $1.09 trillion, while Goldman Sachs estimates $961 billion. According to Bank of America's forecast, by next September, the outstanding short-term Treasury bill balance in the U.S. will reach approximately $8 trillion, accounting for 24.3% of marketable U.S. debt. Short-term debt financing costs are typically lower than those of long-term debt but require more frequent rollovers. With the Federal Reserve maintaining interest rates between 3.75% and 4%, the rising proportion of short-term debt could make U.S. interest expenses "larger and more volatile." The Treasury Borrowing Advisory Committee previously recommended that the proportion of short-term debt in outstanding obligations should be maintained at around 20% in the long term to balance financing costs, debt volatility, and rollover risk. Currently, the U.S. federal deficit remains at a high level. The Congressional Budget Office (CBO) projects that the deficit will remain at approximately 6% of GDP over the next decade, leaving the Treasury Department with ongoing substantial financing needs. [Original Link]