Is America’s $40 trillion debt driving Treasury yields above 5% as interest costs hit $1 trillion and overtake defense spending?
· economictimes.indiatimes.com
Americas debt has crossed $40 trillion, with roughly $1 trillion added in only five months. A 10-year Treasury yield of 5.04% has made new borrowing more expensive, while net interest payments reached $970 billion in fiscal 2025; about $150 billion above defense spending. Moodys removed the U.S. governments last AAA rating that year. As lawmakers repeatedly delay budget decisions, interest costs are becoming one of Washingtons fastest-rising expenses.
Why interest costs are becoming a budget problem
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