Why the Treasury Is Stuck With Higher Long-Term Borrowing Costs

The U.S. Treasury is paying the highest long-term borrowing costs in decades, with the 30-year bond yield above 5 percent and the 10-year at 4.5 percent. In this episode, Lucas and Luna explore why the Treasury has been forced to issue more long-term debt even as rates climb, what that means for the federal budget, and how the persistent supply of government bonds is reshaping the bond market. They dig into the numbers: the federal debt now stands at $38.5 trillion, debt-to-GDP has hit 122.6 percent, and interest payments are on track to exceed $1.2 trillion this year. The hosts also discuss the risk of a vicious cycle where higher rates lead to more borrowing, which in turn pushes rates higher. A must-listen for anyone trying to understand the fiscal bind Washington finds itself in as of May 2026. #NationalDebt #Treasury #BondMarket #LongTermRates #FiscalPolicy #DebtToGDP #InterestPayments #YieldCurve #30YearBond #10YearTreasury #FederalBorrowing #BudgetDeficit #DebtTrajectory #TreasuryAuctions #FiscalSustainability #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo