Latest / The National Debt Podcast with Fexingo: Treasury, Borrowing, and Long-Term Fiscal Outlook
How The Deficit Is Eating Treasury Yields
With the US budget deficit swelling to almost two trillion dollars for fiscal 2026, the mechanics of federal borrowing are shifting under our feet. Lucas and Luna break down how this record-breaking shortfall is altering the relationship between the Federal Reserve and the Treasury market. They look at why the ten-year yield has dipped slightly despite higher debt levels, exploring the tension between short-term rate expectations and long-term fiscal reality. This episode moves beyond generic debt warnings to examine the specific auction dynamics and liquidity pressures that investors face…
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