Is America’s $40 trillion debt driving Treasury yields above 5% as interest costs hit $1 trillion and overtake defense spending?

Economic Times - Oct 5, 2026

America’s 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. Moody’s removed the U.S. government’s last AAA rating that year. As lawmakers repeatedly delay budget decisions, interest costs are becoming one of Washington’s fastest-rising expenses.

Read full article
More News
Copyright © 2015 - 2026 The Financial Capital.

All Rights Reserved.

Subscribe Now!

About Us

The Financial Capital is your independent source for finance information and advice. We provide insights and offer advice from financial experts so you can make the best decisions.