US national debt tops $40 trillion as Treasury yields surge
The US national debt has crossed $40 trillion, and Treasury yields (basically, the government's borrowing rates) are at their highest in years.
The 10-year yield is now 5.23%, a level we haven't seen since 2007, and the 30-year is up to 5.49%.
Rising oil prices and big investments in AI are partly behind this spike, making it more expensive for the government to borrow money.
US interest payments near $1 trillion
With these higher rates, annual interest payments on US debt have ballooned to about $1 trillion, pushing the federal deficit close to $2 trillion.
The Congressional Budget Office warns that if rates stay high, deficits could get even worse, possibly reaching 14% of GDP by 2056.
Lawmakers are starting to pay closer attention as Sen. Jeff Merkley, the ranking Democrat on the Senate Budget Committee, asked the CBO for updated calculations.