Part 5/8:
As the government attempts to roll over its debt during a time of heightened borrowing, we may witness a temporary surge in market volatility. With Treasury Secretary Scott Bennett advocating for shifting debt from short-term instruments to longer-dated securities, it further complicates the scenario. This shift could drive up interest rates across the board given the current insufficient cash flow in the system, risking an environment where the Treasury's refinancing endeavors push rates significantly higher.