The US Treasury signaled it’s still comfortable issuing the shortest-dated debt to meet escalating government borrowing needs — even as warnings emerge about the strategy’s risks.

The Treasury anticipates keeping nominal note and bond sale sizes unchanged “for at least the next several quarters,” the department said in a quarterly statement on debt policy Wednesday. “Treasury believes its current auction sizes leave it well positioned to address potential changes to the fiscal outlook” and shifts in the Federal Reserve’s purchases of Treasuries, it said.