U.S. Treasury Yields Remain Above 5% Amid Rising Government Debt

The 10-year U.S. Treasury yield is currently at 5.04%, having traded above 5.3% earlier in October. This comes as U.S. government debt has exceeded $40 trillion, with projections for net new Treasury issuance to reach $2.1 trillion in 2026. The rising cost of capital and increasing government borrowing are highlighted as significant risks, with annual interest costs now surpassing $1 trillion.