Treasury refunding may tilt toward short-term borrowing, manager says

The U.S. Treasury could increase short-term borrowing and reduce longer-term issuance when it announces refunding plans next week, says Michael Mullis of Kelley & Mullis Wealth Management. He sees demand for the short end from money market funds and stablecoin reserve requirements, while long-end appetite dwindles. Mullis keeps 34% of his portfolio in cash and short-dated Treasurys and 15% in gold, expecting long-end volatility amid sticky inflation.