The U.S. Treasury is relying more heavily on short-term borrowing as elevated long-term yields raise financing costs for an annual budget deficit of roughly $2 trillion. Bank of America forecasts $1.07 trillion in new debt for the fiscal year ending September 2027, JPMorgan estimates $1.09 trillion and Goldman Sachs projects $961 billion. Outstanding Treasury bills are projected to approach $8 trillion, or about 24.3% of marketable Treasuries, by next September, exceeding the Treasury Borrowing Advisory Committee's long-term 20% recommendation. Persistent inflation, robust consumer spending, large federal deficits and heavy investment in artificial-intelligence data centers have helped lift longer-term yields, even as the Federal Reserve raised its benchmark rate to 3.9%. Secretary Scott Bessent's strategy of heavier bill issuance and longer-dated debt buybacks reduces immediate financing costs but increases exposure to future short-term rates.