U.S. Treasury Doubles Longer-Dated Debt Purchases Amid $40 Trillion National Debt Milestone
The U.S. Treasury Department has announced plans to double its purchases of longer-dated bonds in an effort to lower borrowing costs and stabilize bond yields, which had been rising amid concerns over the nation's swelling debt load. The move pushed down 30-year and 10-year Treasury yields significantly, helping stocks snap a three-day losing streak with modest gains across major U.S. indexes. The national debt has now surpassed $40 trillion for the first time in history, driven by years of rising deficits from pandemic-era stimulus measures. Interest costs on this massive debt have reached nearly $1.2 trillion annually and are becoming an increasing financial burden. President Trump criticized high interest rates and threatened economic retaliation against countries aiding Iran. Meanwhile, shares of Moderna and Merck surged after they reported encouraging results from a late-stage trial for their experimental cancer vaccine.
Topics: bond yields cryptocurrencies national debt stock markets U.S. Treasury