US Can Sell More T-Bills to Offset Lost Tariff Revenue, BNY Says

The US is likely to issue more short-dated notes to make up for lost revenues after the Supreme Court overturned President Donald Trump’s tariffs, according to a BNY strategist.

John Velis, Americas macro strategist at BNY, said a rough calculation suggests the US is set to lose half of the approximately $20 billion per month it gets in tariff revenues. The US can lean on T-bills to plug that “substantial” gap, helping to explain why the reaction in US Treasuries to Friday’s ruling has so far been muted, Velis said.