US Federal Debt Hits $40 Trillion, Treasury Yields Surge Despite Buyback Expansion

Published: Aug 25, 2026 18:09

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US federal debt tops $40 trillion for the first time + 30-year US Treasury yield at 5.27% + Treasury buyback expansion failsThe total US federal debt topped $40.05 trillion for the first time on August 19, and interest expenses this fiscal year are expected to be nearly $1.2 trillion (already exceeding the national defense budget). The 30-year US Treasury yield breached 5.337% intraday on August 18 (a new high since 2007), and pulled back to 5.27% on August 21; the 10-year yield was 4.73%. Treasury Secretary Bessent announced on August 20 that the single auction size of long-term Treasury buybacks would double (from $2 billion to $4 billion), but the intervention only worked for two days, and long-end yields rebounded quickly. Macquarie warned that the demand for cheaper financing may force the US Fed to be dragged into the "financial stability" mandate and even return to easing.

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