Hanno Lustig: U.S. government shortens Treasury portfolio maturity further

Hanno Lustig: U.S. government shortens Treasury portfolio maturity further
U.S. Treasury maturity now even shorter

Hanno Lustig observes that the U.S. currently maintains a significantly shorter maturity profile on its entire portfolio of Treasuries compared to other advanced economies. He highlights that this maturity is becoming even shorter over time.

Despite this trend, Lustig points out that expected surpluses for the U.S. are only projected far into the future.

Lustig has previously noted fiscal constraints facing advanced economies. He has urged central banks to clarify the balance sheet trade-offs around bond holdings, according to a prior report. The latest observations add to his ongoing analysis of fiscal policy challenges.

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