Deutsche Bank said that the US Treasury Department's excessive dependence on Treasury bond financing poses risks.

The strategist at Deutsche Bank pointed out that although the market generally expects the Treasury Department to rely more on short-term financing tools, mainly Treasury bills, to help control interest costs, this strategy is not without risks. They wrote: "The risk of excessive reliance on short-term issuance is that it could leave the Treasury Department vulnerable to future refinancing shocks. This would also intensify the link between the Fed's monetary policy and the federal budget, potentially increasing pressure on the Fed's independence due to greater fluctuations in debt interest expenses caused by short-term interest rate volatility."