Odd Lots · Thursday, September 3, 2026
Stanford professor Daryl Duffy contends that the U.S. Treasury Department is a larger force in the bond market than hyperscale companies. He states that the Treasury's issuance of $32 trillion and rising, at $2 trillion annually, dwarfs the projected trillion dollars in debt from hyperscalers, placing the primary burden of absorbing new debt on domestic discretionary investors.
“And I wouldn't describe it as the hyperscalers crowding out the Treasury Department, but rather the other way around.”
“Yeah, I mean, $32 trillion and and rising at $2 trillion a year, there's nothing. I mean, it is true hyperscalers are perhaps going to hit a trillion of debt in the next couple of years. That's small compared to the Treasury Department.”
“So I really think it's the Treasury, and not just the US Treasury, finance ministries and legislatures around the world that are stuffing a lot of bonds into the hands of the same investors Yeah, pension funds, insurance companies, they'll buy all of this and they make trade-offs.”