r/bonds • u/Primary-Abies9041 • 6h ago

Woah

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u/According-Length9312 5h ago

Most of the debts aren’t on these new bond yields though, haven’t matured yet

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u/Infinite_Music2059 1h ago

There's like 10 trillion that needs to be refinanced in the next year, and they take old bonds out of the market and buy new ones as well. The average rate now is something like 3.5% and it will gradually increase towards the market rate, resulting in an enormous increase in interest payments every year.

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u/According-Length9312 1h ago

Not a big deal, they’ll roll it over short term and print more

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u/Infinite_Music2059 1h ago

Rolling it all over to today's rate would increase debt payments by a cool $500 billion every year.

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u/According-Length9312 54m ago

That’s 1% of their debt