The United States will face $7 trillion in debt maturities in 2025—what will happen next? By 2025, the U.S. Treasury must refinance $7 trillion in maturing debt—rising bond yields make this challenge even more severe. In March, the 10-year Treasury yield climbed to 4.3%, increasing borrowing costs. How will the government manage this debt? 1/ Issue new bonds ('debt roll-over')—the Treasury can replace maturing debt with new borrowing. 2/ Adjust maturity terms—the 2-year bond yield is 4.1%, and the 10-year bond yield is 4.3%, the government may extend the debt term to lock in stable rates. 3/ Absorb higher costs—the government may have to accept higher interest payments. 4/ Rely on market demand—U.S. bonds will be auctioned off to banks, investment funds, and foreign governments for financing. 5/ Policy coordination—if the market is weak, the Trump team may urge the Federal Reserve to cut interest rates, potentially lowering borrowing costs over eight quarters. If a recession occurs due to tariffs, layoffs, or broader economic slowdown, the Federal Reserve may step in to stimulate the economy. However, the U.S. Treasury may continue to issue long-term bonds at higher costs, betting on strong investor demand.