US National Debt Tops $40 Trillion as 30-Year Bond Yields Hit Highest Since 2007

Total US government debt crossed $40 trillion for the first time as of Tuesday, August 19, reaching $40.049 trillion according to Treasury Department figures, more than doubling from roughly $19.95 trillion a decade ago. Of that total, approximately $32.266 trillion is held by the public while $7.782 trillion represents intragovernmental obligations such as federal trust funds. The milestone arrived months earlier than forecasters had expected, accelerating in part because of lost revenue tied to President Trump's invalidated tariffs.

The crossing coincides with a sharp rise in borrowing costs: the 30-year Treasury yield hit its highest level since 2007, while the 10-year yield approached its highest point of Trump's second term. The term premium on 10-year Treasuries, a gauge of how much investors demand for the perceived risk of holding long-dated US debt, rose this week to its highest in more than a dozen years. In response, the Treasury Department on Wednesday doubled its purchases of longer-dated bonds, a move that pushed yields lower and gave stocks some breathing room.

Budget watchdog groups have warned that averting a full-blown fiscal crisis will require some combination of tax increases and spending cuts, as ballooning social safety-net and interest costs increasingly outpace revenue.