Milestone marks years of government spending that grew under both Donald Trump and Joe Biden

US debt reached $40tn for the first time on Wednesday, the US treasury department said, after the government deficit doubled over the last decade.

The treasury’s latest debt balance showed $40.047tn on Tuesday afternoon, the highest in US history.

Interest rates, now sitting at about 3.5-3.7%, expected to go up if inflation doesn’t come down to Fed’s 2% target

The US treasury is doubling its buyback of government debt in an effort to balance out the bond market as officials at the US Federal Reserve remain divided over how to deal with high inflation.

The yield rate on 10-year, 20-year and 30-year treasury notes all hit 20-year highs this week, with the 30-year treasury yield rising to its highest rate since 2007. The rapid rise was concerning news for borrowers as major loans, including mortgages, are backed by treasuries.