MarketMap™ Scenario Planner Weekly 08-09-2025

Treasury Market and the Quiet Return of Financial Repression

The U.S. Treasury faces a monumental refinancing task in the coming months — rolling over upwards of $3.7 trillion in debt by September’s end. To meet this gargantuan demand, the Treasury Secretary has indicated a shift towards issuing shorter-term bonds, shying away from longer maturities to keep interest costs manageable. But the question looming over markets is how these massive auctions will be absorbed without spiking borrowing costs.

The answer lies partly in what can only be called “stealth quantitative easing.”