The read
Analysis of Oct 28, 2026, on data through Oct 28, 2026. Charts under each judgment are its evidence; sources are linked in the text.
- Interest is the fastest-growing claim on the budget, and it has further to rise. Federal interest payments take 33.5% of tax receipts. The Treasury pays an average 3.52% on its marketable debt, while new 10-year debt costs 4.99%. Each maturing bond is refinanced at a higher rate, so interest keeps rising even if yields stop climbing.
Average interest rate on Treasury debt against the 10-year yield
Percent, monthly. The average rate the Treasury pays rises toward market yields as old debt matures and is refinanced.
Source: US Treasury, Fiscal Data; Federal Reserve Board (H.15).
Readings in this chart
Interest paid as a share of federal tax receipts
Federal interest payments divided by federal current tax receipts, quarterly, national accounts basis.
Source: Bureau of Economic Analysis.
Readings in this chart