WASHINGTON--Wall Street analysts are keeping an eye on the Treasury Department's new debt management strategy that steps up reliance on short-term maturities to finance the budget deficit.

With today's record-low interest rates, the strategy seems to be paying gains to the government and taxpayers for now by lowering the cost of Treasury debt. Debt financed using Treasury bills with yields of 3% seems like a good deal compared with longer-dated maturities such as 10-year notes yielding 5.30% or 30-year bonds yielding 6%.

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