U.S. Debt Interest Projected to Reach 30 Percent of Revenue by 2036
A projection shows annual interest payments on U.S. public debt rising to 30 percent of government revenue by 2036 if the 10-year Treasury yield averages 4.70 percent. The same scenario would push net interest costs to 5.3 percent of GDP.
thehindubusinessline.comS. 70 percent over the next decade. That yield level sits about 55 basis points above the Congressional Budget Office's current forecast. Under the scenario, nearly one of every three dollars collected by the federal government would go toward debt service, three times the share recorded in 2022.
56 percent on Friday. The projection assumes sustained higher borrowing costs compared with recent Congressional Budget Office estimates.
Key Facts
Story Timeline
3 events- Tuesday
10-year Treasury yield touched 4.68 percent.
1 source@KobeissiLetter - Friday
10-year Treasury yield eased to 4.56 percent.
1 source@KobeissiLetter - This week
Projection issued showing debt interest at 30 percent of revenue by 2036 under 4.70 percent yield scenario.
1 source@KobeissiLetter
Potential Impact
- 01
Higher debt-service costs would leave less revenue available for other federal programs.
- 02
Sustained yields near 4.70 percent would increase annual Treasury borrowing needs.
Transparency Panel
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