Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
How Government Debt Auctions Set the Price of Borrowing
Episode 43 of The Fiscal Policy Podcast dives into the mechanics of government debt auctions, using the US Treasury's recent May 2026 ten-year note sale as a case study. Lucas and Luna explain how the auction process determines the interest rate taxpayers pay on the national debt, the role of primary dealers and indirect bidders, and what a high or low bid-to-cover ratio signals about market confidence. They also explore how the shift toward shorter-dated borrowing in 2025-2026 is raising rollover risk, and what the Treasury Borrowing Advisory Committee's latest report reveals about…
The skinny
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