Journal Article

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


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.

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Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2025-11-24

Pages: 4