Driven by rising international oil prices, expectations that the Federal Reserve will raise interest rates to curb inflation, and other factors, the yield on U.S. 10-year Treasury bonds significantly increased on August 31.
According to data displayed by the Wall Street Journal's 10-year U.S. Treasury bond dashboard system, the yield on 10-year U.S. government bonds rose by 3.9 basis points today, ending at 4.756%, which is the highest level since January 15, 2025. The yield on 30-year U.S. government bonds also increased by 3.7 basis points, ending at 5.244%.
Previously, the yield on U.S. 30-year government bonds reached 5.31% on August 17, setting a new high since June 2007. It is believed that this has led to an expansion of the long-term government bond repurchase program by the U.S. Treasury Department recently.
On August 19th, the U.S. Treasury announced that the total amount of U.S. government debt had exceeded 40 trillion dollars for the first time. Relevant agencies and observers warn that due to a surge in expenses related to social security programs and interest payments, which far exceed the fiscal revenue suppressed by tax cuts, a new financial crisis is brewing.
On August 22, The Washington Post reported that in the face of the public debt issue, which has exceeded the $40 trillion mark and set a new historical high, the U.S. federal government may have to take some measures that will cause public dissatisfaction in order to address it.
Reports indicate that the United States currently pays approximately $1 trillion in interest on its national debt each year. According to predictions by the Peterson Institute for International Economics (PIIE), if there are no reforms to government spending or tax policies, the total debt of the United States could reach $50 trillion within six years.
