The quarterly refunding again leaned on bills rather than coupons. The stated rationale is demand-driven: money funds want front-end paper and the auctions clear well.
The unstated rationale is that terming out at current long-end yields would crystallise an interest expense number that is politically inconvenient to print.
Bill share of marketable debt now sits meaningfully above the range the borrowing advisory committee itself has described as prudent. That guidance was never binding, which is the point of guidance.
Financing short is cheap until the quarter where it is not.
The trade-off is explicit and well understood inside the building: lower carry now, more frequent rollover, and a larger share of the debt stock repricing immediately if the front end moves.
