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How America Rolls Over Its Debt
The national debt is not one giant bill. It is a schedule of IOUs, with old ones coming due while Treasury sells new ones.
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Deficit spending
Deficit spending is the amount by which spending exceeds revenue over a specific period, usually a single fiscal year.
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National debt of the United States
The cumulative money borrowed by the US government to cover budget deficits, tracked as outstanding Treasury securities.
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United States Treasury security
United States Treasury securities are debt instruments issued by the government and used as cash equivalents worldwide.
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Auction
An auction is a process of buying or selling goods and services through bids, which are offers of a specific price or terms.
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Maturity (finance)
Maturity is the exact date when a loan, bond, or other debt must be fully repaid to the lender.
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Yield to maturity
Yield to maturity calculates the total annual return on a bond held to the end, factoring in its market price, regular payments, and face value.
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Yield curve
A yield curve is a line graph that compares the interest rates of bonds from the same issuer across different lengths of time.
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Market liquidity
Market liquidity is a market feature that lets you buy or sell an asset quickly without forcing a major change in its price.
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Open market operation
An open market operation is the buying or selling of government bonds by a central bank to manage interest rates and liquidity.