BREAKING: US annual interest expense is up to a record 18.5% of federal government revenue. This is officially above the previous record of 18.4% set in 1991. This percentage has more than QUADRUPLED over the last 4 years as interest expenditures on public debt skyrocketed. US
Why it matters
Record interest expense as share of revenue raises fiscal sustainability concerns, potentially leading to higher term premium and yields.
Details
BREAKING: US annual interest expense is up to a record 18.5% of federal government revenue. This is officially above the previous record of 18.4% set in 1991. This percentage has more than QUADRUPLED over the last 4 years as interest expenditures on public debt skyrocketed. US annual interest expense now stands at a record $1.25 trillion, more than 4x the level seen in 1991. Meanwhile, the 30Y Treasury yield is trading at ~5.21%, just 13 basis points from its highest level since 2007. By comparison, the 30-year yield was oscillating at ~8.00% in 1991, underscoring how much the US debt burden has grown since then. The US debt crisis is in uncharted territory.
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- x · 2026-08-31 01:28 UTC