US treasury market tops record $25-trillion mark in July
government is on the hook to investors for more than $25 trillion as it ramps up borrowing to plug a widening budget gap. The combined total amount of Treasury bills, notes and bonds outstanding increased by about 1% during July to a record $25.137 trillion, according to data released Friday.
It's poised to continue to mount. As recently as June 2020, total marketable debt outstanding was under $20 trillion.
It was under $15 trillion as recently as June 2018. Borrowing increased sharply in 2018 to finance tax cuts and surged in 2020 to finance the federal pandemic response.
Now it's expanding in part because higher interest rates have inflated the cost of servicing the existing debt. Also, the outlook for the federal budget deficit has worsened.
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