CBO: US Treasury spends $3 billion daily on national debt interest

Key Points:

• The U.S. budget deficit reached $1.8 trillion in the first 10 months of the fiscal year, $169 billion more than the same period last year, prompting the CBO to raise its full-year deficit projection to $2.1 trillion, $200 billion above earlier estimates.
• Debt hawks express concern over the rising U.S. debt-to-GDP ratio, currently at 122%, warning that higher risk premiums on lending could increase interest costs and crowd out public investment, with some fearing a "debt-induced heart attack" as described by Ray Dalio.
• Treasury Secretary Scott Bessent recently intervened to stabilize the Japanese yen, purchasing $5 billion to $10 billion of the currency to support regional economic stability, which is crucial given Japan's status as the largest foreign holder of U.S. debt, owning $1.14 trillion in Treasury securities.
• The yen initially rallied following the intervention but has since weakened slightly, a move largely anticipated by markets, as analysts note there was no speculative attack and the currency is returning to its market-perceived fair value.