Now that the megabill has passed, expect a ton of short-term debt to be sold to finance the government’s deficit

Market Extra

Last Updated: July 4, 2025 at 7:43 p.m. ET
First Published: July 3, 2025 at 3:05 p.m. ET

Bond-market participants were preparing as President Donald Trump’s massive plan for tax and spending cuts was signed into law, opening the floodgate to a deluge of short-term Treasury bills needed to finance the government’s deficit.

With Trump’s megabill clearing a final 218-214 vote in the House of Representatives on Thursday and getting the president’s signature Friday, the prospect of a surge in T-bills in what’s known as the very front end of the Treasury curve would test investor demand.

About the Author

Vivien Lou Chen is a Markets Reporter for MarketWatch. You can follow her on Twitter @vivienlouchen.