Here’s how much worse U.S. debt could get as Treasury yields surge to the highest levels in two decades
Publicly held debt would explode to 222% of GDP by 2056, under a scenario where interest rates rise by 1 percentage point.
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# Investing Summary Under a worst-case scenario of interest rate increases, U.S. publicly held debt could surge to 222% of GDP by 2056—a significant deterioration from current levels that would substantially increase the government's debt servicing costs and potentially crowd out private investment. The sharp rise in Treasury yields to two-decade highs amplifies this risk, as higher borrowing costs would accelerate the trajectory of federal debt accumulation and likely pressure equity valuations and economic growth.
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