Overview

• 30-year Treasury yields have climbed above 5 percent for the first time in nearly two decades, driving long-term borrowing costs to multi-decade highs.
• The U.S. government is set to pay roughly $950 billion in interest this year, surpassing its defense budget, approaching Social Security expenditures.
• A May downgrade by Moody’s left all three major credit agencies with the U.S. below their top rating for the first time.
• President Trump’s tariff threats against the EU coincided with passage of a major tax-and-spending bill that boosted borrowing needs.
• Analysts warn that unchecked debt growth paired with higher yields could crowd out private investment, heightening recession risks.