$WLD
๐จ๐จ The US debt crisis intensifies ๐ข๐ข
~26% of US federal debt is set to mature within the next 12 months, one of the largest portions this century ๐ข
By comparison, the peak was ~29% in 2020, when interest rates set by the Fed were at 0%.
Between 2010 and 2020, this percentage remained below 20%.
Currently, interest rates stand at 3.75%, with the market pricing in 2 cuts this year.
This means ~$10 trillion in debt must be refinanced at significantly higher interest rates over the coming year.
This comes as the US Treasury has shifted toward issuing shorter-dated bonds to minimize interest costs in the near term ๐ข
Who is going to buy all of this debt?๐ข
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