@jolyonFederal interest costs hit $1.4 trillion over the last twelve months, nearly tripling the 2020 level. A larger slice of every federal dollar now services past borrowing instead of current programs. BofA Global Investment Strategy and Bloomberg show US Treasury interest payments climbing steeply toward July 2026 and November 2028. Chart 3 indicates debt costs will keep rising until 5Y UST yields drop below 3¾%.

@jolyonFederal interest costs hit $1.4 trillion over the last twelve months, nearly tripling the 2020 level. A larger slice of every federal dollar now services past borrowing instead of current programs. BofA Global Investment Strategy and Bloomberg show US Treasury interest payments climbing steeply toward July 2026 and November 2028. Chart 3 indicates debt costs will keep rising until 5Y UST yields drop below 3¾%.