US national debt exceeds $40 trillion — Cyprus Mail
US national debt has exceeded $40 trillion and reached 127% of the country’s GDP, heightening international investors’ concerns over the traditional status of US government bonds as a risk-free asset. Cyprus Mail reports, citing data from the US Treasury Department.
Over the past decade, US national debt has more than doubled. Per US resident, it amounts to about $120,000, while the total volume of liabilities, according to estimates cited in the article, is increasing by nearly $7 billion every day.
Debt servicing costs
US spending on debt interest payments is rising by 14% annually. The Congressional Budget Office forecasts that in 2026, it will almost certainly exceed $1 trillion for the first time. This is more than the country’s annual defense spending, estimated at approximately $900 billion.
The Congressional Budget Office also expects a federal budget deficit of $2.1 trillion in 2026, or nearly 6% of GDP. The article notes that a deficit of this scale is unusually high for a period of economic growth.
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Pressure on global markets
Against the backdrop of rising energy prices due to the conflict with Iran and renewed inflationary pressure, US Federal Reserve Chair Kevin Warsh pointed to the possibility of interest rate hikes. On Wednesday, the Federal Open Market Committee unanimously approved the first 25-basis-point rate increase in more than three years.
In early September 2026, the yield on 10-year US government bonds rose to 4.8%, which, according to the publication, increased pressure on the European bond market and borrowing costs for eurozone countries and companies. The dollar currently accounts for nearly 60% of global foreign exchange reserves.
At the same time, major foreign holders are gradually reducing their share of outstanding US debt, while central banks are diversifying reserves through tangible assets. The price of gold, the article notes, remains near $4,475 per ounce.
