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US national debt tops $40tn as 30-year yields hit near 20-year highs
The Treasury said it would expand longer-term bond buybacks from $2bn to $4bn effective 9 September to 4 November, aiming to provide more liquidity support for longer-dated securities.
US national debt has more than doubled in a decade to pass $40tn, according to Treasury figures cited by BBC Business, reflecting sustained heavy spending across both the Trump and Biden administrations and higher interest payments.
The $40.05tn total, as of 18 August, includes all outstanding Treasury bonds, bills, and notes. The Congressional Budget Office projects the US is nearing its $41.1tn debt ceiling and forecasts borrowing will rise to about $64tn by 2036.
The milestone comes after the interest rate on 30-year Treasury bonds reached 5.34% on Tuesday, the highest level in almost 20 years, a move that can flow through to borrowing costs for mortgages, car loans, and credit cards. BBC Business also links the yield surge to rising oil prices tied to the US-Iran war, as investors weigh inflation risks.
The Treasury Department said it would increase its buyback operations by at least double, from $2bn to $4bn, effective 9 September through 4 November, and reported that the 30-year borrowing rate eased to 5.18% after the intervention. BBC Business added that the decision was meant to provide greater liquidity support for longer-term bonds.