Citigroup analysts suggest the US Treasury may cut long-term bond auctions by $3 billion each to pivot toward short-term debt as interest costs climb.
Over 20% of US tax revenue now covers national debt interest as Treasury yields hit levels not seen in over two decades.
Despite 10-year Treasury yields hitting a 24-year high, US economic growth of 8.5% continues to outpace the 3.4% average interest rate on government debt.
US federal interest payments are set to reach $970 billion in 2025, surpassing defense spending as the government struggles with the consequences of its short-term debt strategy.
