The UK and Japan are responding to investors' demand to lend more short-term debt. Although this shift in strategy can reduce the government's current interest expenses, it exposes it to the risk of potentially costly interest rate fluctuations when the debt is rolled over. The UK has drastically cut the issuance of long-term bonds to a record low this year, and is considering expanding the ultra-short-term notes market. After long-term bonds were sold off, Japan is also responding to market calls and drastically increasing the issuance of short-term debt.

The UK and Japan are responding to investors' demand to lend more short-term debt. Although this shift in strategy can reduce the government's current interest expenses, it exposes it to the risk of potentially costly interest rate fluctuations when the debt is rolled over. The UK has drastically cut the issuance of long-term bonds to a record low this year, and is considering expanding the ultra-short-term notes market. After long-term bonds were sold off, Japan is also responding to market calls and drastically increasing the issuance of short-term debt.