The Treasury Department’s use of short-term bills to finance government spending, along with the

Federal Reserve’s signal of more rate cuts in 2025, are keeping bond-market yields steady. And this should enable officials to finance the $1.8 trillion budget deficit for fiscal 2025, which ended on Sept. 30.

That’s according to economist Steven Blitz of the analysis firm GlobalData TS Lombard. In a note on Thursday, he wrote that a “lite version” of yield-curve control has effectively arrived in the U.S., with the Treasury and the Fed now working together. The term “yield-curve control” refers to Japan’s 2016-24 effort to stimulate its economy by targeting a 0% yield on its 10-year government bond BX:TMBMKJP-10Y.