Interest on National Debt Now the Top Budget Expense

Treasury data shows interest exceeds $1 trillion per year.

Information from the U.S. Treasury Department shows that estimated annualized interest payments on the nation’s debt exceeded $1 trillion at the end of October. The amount doubled in the past 19 months. 

The Treasury now faces renewed selling pressure into the new year to secure the rising debt interest payments. The increase in yield on long-term bonds suggests the government will continue to face an escalating interest bill. 

A strategist with Bloomberg Intelligence said, “There will be further increase to Treasury coupon cutting and T-bills outstanding moving forward. Besides deficits of over $1 trillion in the foreseeable future, climbing maturities following the increase of issuance from March 2020 will also need to be refinanced.” 

As the Lord Leads, Pray with Us…

  • For Treasury Secretary Yellen as she oversees efforts to cover the payments and obligations of the U.S. government.
  • For U.S. economic officials as they evaluate the national debt and ways to refinance it.
  • For members of Congress as they consider appropriations and possible second continuing resolution.

Sources: Bloomberg News, Wall Street Journal, Yahoo Finance 


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