US fiscal difficulties may trigger a vicious cycle of debt
2026-08-21 15:05:58
According to CoinMeta, analyst Carol Kong stated that during the current fiscal year as of July, U.S. public debt interest payments increased by 15% to reach $1.17 trillion, partly due to rising yields on U.S. Treasury bonds. She pointed out that the Trump administration does not seem to have much desire to pursue substantial fiscal reforms. CBA predicts that long-term U.S. Treasury bond yields will continue to face upward pressure, which will further increase the government's borrowing costs and expand the scale of public debt. Kong noted that this could create a feedback loop: the continuously rising debt level and debt service costs prompt investors to demand higher bond yields, which in turn further increase the government's financing costs and exacerbate debt pressure.
Source:Jin10 Data
This content is for market information only and does not constitute investment advice.
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