Growing US national debt drives Treasury yields to historic highs

Financial markets and investors are reacting to the rapidly growing U.S. national debt, which is approaching a record of $40 trillion, by requiring greater returns for those who invest in America's debt obligations. Yields on U.S. Treasurys have been elevated recently, in part due to the growth in debt, with the federal government projected to run a roughly $2.1 trillion budget deficit this fiscal year, according to the nonpartisan Congressional Budget Office (CBO). Two recent Treasury auctions in the last week drew attention due to the yields reaching historic levels – the sale of 10-year notes cleared at a high of 4.683%, the highest in 19 years, while the 30-year bond auction stopped at 5.216%, a 25-year peak. Demand from investors has remained steady despite the higher yields, as they navigate concerns over the growing debt, widening budget deficits and inflation – with the higher yields attracting investors.