Originally Posted by Butterfly

^ again, you don't understand. Government securities are issued all the time, they retire some, and replace some. Actually government borrowing is deferred in accounting practice, it's not a cash economy where you raised billions overnight. Banks have been injected with cash by the Central bank, they need to keep ratios stable, the capital is invested, usually in government securities. This is ever more true these days as they are afraid of lending. Instead they run to buy Treasury securities, too much demand for them which has even the US short term notes turn into a negative yield.