Governments around the world are actively turning to short-term borrowing:

The average maturity of global government bonds has fallen to 8.8 years, the lowest level since 2014.

Since 2021, the average maturity has shortened by 1.5 years as countries increasingly rely on government bonds to fill widening deficits.

This shift is especially influenced by the UK, Japan, and the US, which have reduced the issuance of long-term bonds as demand wanes.

This year, the issuance of long-term bonds in the UK has dropped to a historic low, while Japan is increasing short-term borrowing after a significant decline in demand for ultra-long-term bonds.

Additionally, the Bank of England and the Bank of Japan are continuing their quantitative tightening plans(QT), effectively reducing holdings of long-term debt.

Overall, these strategies make governments more susceptible to short-term interest rate fluctuations, and if central banks raise rates, it could push up interest costs.