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  • U.S. Government Debt Spikes By $1.2 Trillion Since Debt Ceiling, to $32.7 Trillion. Treasury to Add $1.5 Trillion in Debt by Year-End.

U.S. Government Debt Spikes By $1.2 Trillion Since Debt Ceiling, to $32.7 Trillion. Treasury to Add $1.5 Trillion in Debt by Year-End.

by Wolf Richter Wolf Street

Stunning numbers out today. Investors will buy the securities, plus those the Fed steps away from. But… Crystal ball sees rising longer-term yields.

To set the scene for what’s to come in a moment: The total US national debt spiked by $1.19 trillion since the debt ceiling was lifted, to $32.66 trillion.

[…] And to set the scene further: This $32.66 trillion of debt is composed of two groups of Treasury securities:

  • $6.9 trillion of nonmarketable (not traded in the market) Treasury securities that have been bought by US government pension funds, the Social Security Trust Fund, etc.;

  • $25.7 trillion in marketable securities (Treasury securities held and traded by the global public, from regular folks to central banks, including the Fed).

Marketable securities outstanding have spiked by $1.05 trillion since the debt ceiling was lifted on June 2, a huge amount of issuance in two months.