A lot of people, including some really well known ones, cite the figure that the U.S. has to roll $9 trillion in debt over the next 12 months, as though it’s a disaster.
Sometimes they assume the a...
Yes! But it’s still an extra risk isn’t it? Of course if yields now fall then that has the upside risk of being able to refinance at lower rates (presumably with longer duration, and presumably that’s part of the plan to subsequently devalue the debt in real terms). If yields stay the same then the situation remains the same. The downside risk is that we see higher yields forcing higher interest expense and the debt spiral accelerates?