US National Debt Passes $40 Trillion as Treasury Doubles Bond Buybacks to Relieve Yield Pressure
US gross national debt reached $40.047 trillion as of 18 August 2026, according to the US Treasury Department, doubling from approximately $20 trillion a decade ago. The acceleration in borrowing has been driven by spending under successive administrations, with the current fiscal year alone adding $1.8 trillion to the total, partly due to $100 billion in tariff refunds paid to date. The debt has arrived within sight of the $41.1 trillion statutory debt ceiling, and the Congressional Budget Office (CBO) projects total debt could reach $64 trillion by 2036 if current trajectories hold. The 30-year US Treasury bond yield hit 5.34% on 18 August, the highest level in almost 20 years, before easing after the Treasury announced it would at least double its bond buyback programme from $2 billion to $4 billion per operation, effective from 9 September to 4 November 2026. The stated rationale was to provide greater liquidity support for longer-term bonds. Yield increases at this magnitude ripple through global capital markets: they influence sovereign borrowing costs internationally, reset benchmark rates for corporate debt issuance, and compress equity valuations by raising discount rates. The yield surge has been driven by elevated oil prices linked to US-Iran conflict, inflation concerns, and heavy concurrent global sovereign and corporate issuance. Analysts at Oxford Economics described the buyback as an attempt to provide relief on long-term borrowing costs under significant pressure, while cautioning it was unlikely to provide meaningful long-term relief given the outstanding stock of Treasury debt.
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