The US Treasury just announced that they will be expecting to borrow $1.007 trillion in Q3 this year, which is a significant step up from their borrowing estimate seen back in April ($554 billion).For some context, the debt ceiling issue in the earlier months this year meant that the US Treasury had to cut back on issuing securities in order to keep stay within limits. But after Trump's spending bill came about and an extension of the debt ceiling by $5 trillion to more than $40 trillion, there is some catching up to do.As such, the US Treasury has been ramping up on short-term issuance (namely T-bills) in particular in order to replenish its cash stockpile. That has shrunk to about $300 billion and the latest announcement says that they want to bump that up to $850 billion heading into Q4 this year.If so, that will see them take on borrowing of $590 billion in the final quarter of 2025.Why is all this important?Well, markets are now looking to see if the US Treasury can maintain the status quo in terms of issuances and the size of debt auctions amid the ever increasing US budget deficit. Or more specifically, how long can they keep this up before having to do so. After Trump's "big, beautiful bill" passed, the US fiscal deficit is set to soar even higher to $2.8 trillion potentially over a decade.For now, it doesn't seem like they should be in a hurry to change things in the latest quarter. On Wednesday tomorrow, they will be announcing auction sizes and new issuances of 3-year, 10-year notes, and also 30-year bonds. The announcement will come at 1330 GMT and investors are anticipating no change to the existing financing plans.The thinking at the moment is that the current needs by the US Treasury can and should be met by issuing more short-term debt i.e. T-bills. In other words, no major shake up is expected in the bond market and for broader markets as well. That is so long as money markets can continue to swallow and digest the ramping up of T-bills issuance.In any case, this is just something to take note of in case there are any surprises. This article was written by Justin Low at investinglive.com.