An anonymous reader writes: U.S. Treasuries could face further selling pressure in the new year, judging by the country’s rising debt repayment bill. Estimated Annualized Interest Payments on U.S. Government Debt the pile surpassed $1 trillion at the end of last month, shows the Bloomberg analysis. This projected amount has doubled over the past 19 months compared to the equivalent figure predicted at the time. Estimated interest charges are calculated using U.S. Treasury data that shows the government’s monthly debt balances and the average interest it pays.
Of course, the estimate of interest costs is different from what the Treasury actually paid. Interest costs for the year ended Sept. 30 ultimately totaled $879.3 billion, up from $717.6 billion the year before and about 14% of total spending. But looking ahead, rising yields on long-term Treasuries in recent months suggest the government will continue to face a growing interest bill.
