The US government will need to offer interest rates higher than 4% on its $11 trillion in treasury auctions if demand is insufficient, potentially reaching 5% or 6%.
"So, the government's going to auction off 11 trillion of US treasuries, and they're going to hope that there's going to be enough people to buy them up and an interest rate of around 4%. But if there aren't enough people willing to lend the government 11 trillion at a 4% interest rate, then the US government's going to have to offer a higher interest rate to attract more lenders, maybe 4.25% or 4.5% or even 5% or even 6%."
