Deutsche Bank stated that the U.S. Treasury's excessive reliance on Treasury bill financing poses risks

Deutsche Bank strategists pointed out that while the market generally expects the Treasury to rely more on short-term financing tools—primarily Treasury bills—to help control interest costs, this strategy is not without risks. They wrote, "The risk of over-relying on short-term issuance is that it exposes the Treasury to vulnerabilities from future refinancing shocks. This would also exacerbate the connection between Federal Reserve monetary policy and the federal budget, potentially leading to greater fluctuations in debt interest expenses due to short-term interest rate volatility, thereby placing greater pressure on the independence of the Federal Reserve."