Higher Treasury Supply Is Likely to Put Upward Pressure on Interest Rates

Huixin Bi, Maxime Phillot and Sarah Zubairy

Economic Bulletin, 2025, 4

Abstract: U.S. government debt has been increasing over the past two decades and is expected to continue to increase. The higher supply of Treasury securities issued to fund this debt is likely to put upward pressure on interest rates. This pressure, in turn, could increase both term premiums and the long-run neutral rate.

Keywords: government debt; treasury securities; interest rates; neutral rate (search for similar items in EconPapers)
Date: 2025
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