Introduction to Finance

TA B L E 8 . 2
Maturity Distribution and Average Length of Marketable Interest-Bearing 
Public Debt Held by Private Investors (Percentage of Holdings)
Maturity Class
2006 (Sept)
2008 (Sept)
2011 (Sept)
2015 (Sept)
Within 1 year
32.1%
47.8%
31.5%
28.1%
1–5 years
37.3
28.1
38.8
42.0
5–10 years
17.8
14.3
19.4
20.1
10–20 years
8.0
6.7
3.9
1.8
20 years and over
4.8
3.1
6.4
8.0
Total
100.0%
100.0%
100.0%
100.0%
Average maturity of all
marketable issues:
4 years, 
9 months
3 years, 
10 months
5 years, 
0 months
5 years, 
1 month
Sources: Economic Report of the President
 
and Department of the Treasury, www.treasury.gov.

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8.4 Term or Maturity Structure of Interest Rates
203
In summary, the Treasury is the largest and most active borrower in the fi nancial markets. 
The Treasury is continuously in the process of borrowing and refi nancing. Its fi nancial actions 
are tremendous in contrast with all other forms of fi nancing, including those of the largest 
business corporations. Yet, the fi nancial system of the nation is well adapted to accommodate 
its needs smoothly. Indeed, the very existence of a public debt of this magnitude is predicated 
on the existence of a highly refi ned monetary and credit system.
DISCUSSION QUESTION 2
Do you believe that foreign and international investors will continue to hold large por-
tions of the U.S. national debt in the future?
8.4
Term or Maturity Structure 
of Interest Rates
The