The Federal debt maturity profile has been rising. The average is 7 years.
Source: https://ftalphaville.ft.com/2014/10/16/2004102/the-real-reasons-why-the-us-treasurys-debt-maturity-has-been-rising/
The maturity is negatively correlated to the budget deficit. The higher the budget deficit, the lower the average maturity. This is because the U.S. government wants to bring down the maturities so that it is easier to finance the budget deficits at lower interest rates.
The maturity is correlated to U.S. debt. The higher the debt of a nation, the higher the maturity needs to be to be able to pay off this debt due to its enormity.
Conclusion: On one hand maturity will need to go down due to higher budget deficits financing, but on the other hand, the maturity will need to go up due to the enormity of the U.S. debt. So the Federal Reserve is sitting between a rock and a hard place.
Some more charts:
Bills (term of a few days to 52 weeks), notes (2, 3, 5, 7, and 10 years), floating-rate notes (2 years), TIPS (5, 10, and 30 years), and bonds (30 years) offered by the Treasury make up what is called marketable debt.
Source: https://ftalphaville.ft.com/2014/10/16/2004102/the-real-reasons-why-the-us-treasurys-debt-maturity-has-been-rising/
The maturity is negatively correlated to the budget deficit. The higher the budget deficit, the lower the average maturity. This is because the U.S. government wants to bring down the maturities so that it is easier to finance the budget deficits at lower interest rates.
The maturity is correlated to U.S. debt. The higher the debt of a nation, the higher the maturity needs to be to be able to pay off this debt due to its enormity.
Conclusion: On one hand maturity will need to go down due to higher budget deficits financing, but on the other hand, the maturity will need to go up due to the enormity of the U.S. debt. So the Federal Reserve is sitting between a rock and a hard place.
Some more charts:
Bills (term of a few days to 52 weeks), notes (2, 3, 5, 7, and 10 years), floating-rate notes (2 years), TIPS (5, 10, and 30 years), and bonds (30 years) offered by the Treasury make up what is called marketable debt.
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