Treasury data show a record $1.36 trillion in debt-service spending for fiscal 2026, ended September 30, though this gross figure includes interest credited to trust funds such as Social Security. The CRFB puts net interest paid to outside holders at $1.1 trillion, a record 3.4% of GDP. The fiscal 2026 deficit reached $1.99 trillion, up 12%, as spending hit a record $7.40 trillion against receipts of $5.40 trillion. Net tariff income fell 11% to about $173 billion after $145 billion in refunds. The article argues that heavy long-bond supply is pressuring TLT, which closed at $80.05 on October 16, near the low end of its 52-week range of $76.43 to $92.19.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on 247wallst.com ↗
Keywords
public debtinterest ratesbondsbudget
Open a keyword to see other news on the same topic.
Related tickers and likely impact
DXY
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/16/2026 | 101.78 |
| Change that session | -0.20% |
XAU/USD
▲ Likely positiveRelevance: low
| Market | Gold |
|---|---|
| Close on 10/16/2026 | 4,165.63 |
| Change that session | -0.13% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Interest on the National Debt Just Hit a Record $1 . 36 Trillion
Treasury's full-year figures for fiscal 2026 show a record $1.36 trillion in gross debt-service spending, which includes interest credited to trust funds such as Social Security. The Committee for a Responsible Federal Budget puts net interest paid to outside holders at $1.1 trillion, or 3.4% of GDP. The fiscal 2026 deficit reached $1.99 trillion, the largest in five years, as spending rose to a record $7.40 trillion, outpacing record receipts of $5.40 trillion. Heavy long-bond issuance typically pressures TLT, yet the fund closed at $80.05 on October 16 and gained 2.65% over the week as investors moved into long bonds during a tech selloff. The article notes TLT is down 33.99% over five years and says it likely faces continued pressure.
- The world's richest nation just recorded a deficit of nearly $2,000 billion
The US Treasury reported on October 16 that the federal budget deficit for fiscal 2026 reached $1,992 billion, about 12% above the $1,775 billion of the prior year. It is the highest in five years and the third-largest annual deficit on record after 2020 and 2021, and marks the 25th straight fiscal year of deficits. The September deficit was $27 billion, versus a $198 billion surplus a year earlier. Social Security (nearly $1,700 billion) and Medicare (nearly $1,100 billion) were the largest outlays, and net interest costs topped $1,000 billion. Individual income tax revenue rose about 7% to over $2,800 billion, while corporate tax fell about $70 billion to $381 billion due to last year's tax cuts. Total debt exceeded $40,000 billion, pushing 10- and 30-year Treasury yields to 24-year highs.
- US Deficit Climbs to $1 . 99 Trillion in FY2026 , the Largest Since 2021
The U.S. federal deficit reached $1.99 trillion in fiscal year 2026, up 12% and the widest gap since 2021, according to data shared by Kalshi on October 17. Spending hit $7.4 trillion, up 6%, while net interest alone climbed 12% to $1.36 trillion. The Treasury must keep issuing debt to cover the gap, and the article argues heavier supply could push yields higher. It flags that upcoming auctions will show what yield concessions the market demands.
- Under Trump , deficits remain high while borrowing costs escalate
- Under Trump , deficits remain high while borrowing costs escalate
- There no excuse for $2 trillion budget deficits – Daily Breeze
The Congressional Budget Office reported a federal deficit of nearly $2 trillion for fiscal year 2026, worse than any year except the 2020 and 2021 pandemic years. Revenue rose 3% to more than $5.4 trillion, but spending rose 6% to $7.4 trillion. Spending on Social Security, Medicare and Medicaid grew 7%, and interest on the debt rose 11% to exceed $1.1 trillion. The author argues the problem is spending rather than a lack of revenue, and proposes reforms such as indexing the retirement age to life expectancy, converting Medicare to premium support, and capping Medicaid spending per enrollee. The piece also warns that rising debt pushes up interest rates for households and small businesses.
Related markets
Latest news
- Why Meta's Q3 earnings could be a little hard to interpret
Meta is reporting its third-quarter earnings after the market closes Wednesday, and Yahoo Finance's Brian Sozzi says the report will be hard to interpret. Recent good news on Meta's AI products, including new models and an AI agent, may not appear directly in the results but will likely be discussed on the earnings call. The key uncertainty is how investors will react if Meta raises its capex outlook again: it could be seen as fueling those products, or as overspending on offerings not yet reflected in financials. Sozzi expects the market to give Meta the benefit of the doubt on higher capex, as long as the increase does not shock investors.
- Zerohash rolls out a new tool to move crypto without copying wallet addresses
Zerohash launched AUTH, a service that lets users move crypto, stablecoins and blockchain-based stock tokens between linked exchange accounts or self-custody wallets without copying wallet addresses or choosing a blockchain network. To transfer, users pick an account in an app that offers AUTH, sign in and approve the move, while the service handles routing and settlement and each app sets which assets and transfer types it allows. AUTH supports more than 600 connections, including Coinbase, Robinhood, Gemini, MetaMask and Phantom, with Coinbase, Robinhood and Gemini live and Kraken in beta. The launch comes as Zerohash's application for a national trust bank charter, returned by the Office of the Comptroller of the Currency in July, remains pending after a narrower refiling on Aug. 18.
- 2 charts show why Wall Street is right to worry about tech stocks
Rising cost of capital could affect the financial statements of hyperscalers such as Oracle (ORCL) and Google (GOOG, GOOGL) in 2027, as they need fresh debt to fund AI infrastructure and free cash flow may turn negative. JPMorgan strategist Mislav Matejka forecasts hyperscaler free cash flow will turn negative in 2027, implying credit markets will drive more of the AI build-out. Consensus estimates for 2027 capital expenditures are already rising from levels experts believe are too low. Morgan Stanley sees total 2027 capex among hyperscalers reaching $1.6 trillion, up from $978 billion estimated for this year. Dan Ives of Yorkville expects capex to reach the trillions and over 1,000 datacenters to be built in the next few years.
- Update on loan rate cuts as of the evening of Oct 19: MB, VietinBank, SHB, OCB join in
SHB, MB, VietinBank and OCB have announced loan rate cuts, following Agribank, Vietcombank, BIDV, ACB, LPBank and VietBank, with typical reductions of 1.5-2% per year. MB is cutting 1.5% per year for five priority sectors, to rates from 7.9% per year, and up to 2% in some cases; VietinBank is cutting up to 2% per year, while OCB offers up to 2.25% per year on some medium- and long-term loans for OCB Priority Banking members. SHB is cutting 1.5-2% per year for businesses and households and offers rates from 5.5% per year for lecturers and students at some universities. Vietcombank commits to cutting at least 2% through year-end, BIDV applies rates from 6% per year on short-term VND loans from 15/10/2026, and VietBank runs a VND 3,000 billion package. Specific benefits depend on borrower type, loan purpose, term and program conditions, following directives from the Government and the State Bank of Vietnam.
- Nvidia wins CPU business from Modal, previously exclusive to AMD and Intel
Modal, a San Francisco-based AI cloud startup that previously ran its AI agent workloads only on Intel and AMD processors, will begin using Nvidia's new Vera CPU. Early tests showed the Nvidia chip doubled work capacity for AI agents, and Modal plans to run it alongside Intel and AMD chips, assigning each task to the most efficient hardware, though integration requires substantial software changes. Modal recently raised $750 million in a round led by Accel at a $15.75 billion valuation and expects $1 billion in sales over the next year, with usage tripled and revenue up more than 15 times year-over-year. Nvidia projects at least $20 billion in Vera chip revenue this fiscal year in a market it estimates at about $200 billion, and says OpenAI, Anthropic, Oracle and Perplexity also plan to use the chips.
- America's EV Plans Have Died
Billions of dollars went into EV factories, dealerships and marketing after President Biden set a goal for 50% of new US car sales to be zero-emission by 2030, but EV sales have since fallen sharply. US EV sales dropped 30.7% in the first nine months of 2026, after the $7,500 tax credit expired on September 30 last year, and gas prices near $4.50 per gallon have done little to lift them. According to Kelley Blue Book, the average transaction price of a new EV was $54,754 in August, above the $50,089 average for all new cars. Ford's EV sales fell 80.2% to 6,047 in the third quarter, and it has no new EV planned until its Fathom launches next year, while Tesla holds over 50% of the market and no other major automaker has even 10%. The article says EVs could recover if gas prices reach $5 and stay there for months, but that is uncertain.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.