Federal Interest Costs Exceed Defense Spending as Debt Tops $40 Trillion

Net federal interest costs were reported at $1.052 trillion, above defense spending for the 25th consecutive year; a separate report puts gross interest at a record $1.36 trillion. The deficit was about $1.99 trillion and debt topped $40 trillion. Treasury is increasing scheduled buybacks of longer-dated debt, while bond-market commentary points to issuance and deficits as factors to watch.