From 24/7 Wall St. · Omor Ibne Ehsan · · 1m 10s
National Debt Interest Hits $1.36 Trillion Record
U.S. debt interest hits $1.36 trillion, highest in history, as Treasury prices remain stable despite record borrowing.
In brief
U.S. debt interest hits $1.36 trillion, highest in history, as Treasury prices remain stable despite record borrowing. The U.S. federal government paid $1.36 trillion in interest on national debt in fiscal 2026, a record that could lead to higher Treasury bond prices. Originally reported by 24/7 Wall St..
Record Debt Interest Payment
The federal government paid $1.36 trillion in interest on national debt for fiscal 2026, a record figure.
Debt Service vs. GDP
Net interest paid to outside holders reached $1.1 trillion, 3.4% of U.S. GDP, a record.
Fiscal Deficit Growth
The deficit reached $1.99 trillion, up 12% from fiscal 2025, making it the largest deficit in five years.
Treasury Market Reaction
The iShares 20+ Year Treasury Bond ETF (TLT) closed at $80.05, up 0.1% despite record interest payments.
Long-Term Treasury Decline
TLT has dropped 4.95% in 2026, 8.29% over one year, and 33.99% over five years.
Supply Pressure on Treasuries
Record deficits mean more Treasury issuance, which could push TLT prices down as investors seek yield.
What This Means for Investors
TLT holders face continued pressure, especially those nearing retirement, as record deficits increase long-bond supply.
What to remember
The U.S. federal government paid $1.36 trillion in interest on national debt in fiscal 2026, a record that could lead to higher Treasury bond prices.
