US National Debt Tops $40 Trillion, Exacerbating Bond Yield Pressure

The US national debt has surpassed $40 trillion for the first time, adding a structural headwind to bond markets. This fiscal milestone is squeezing global asset markets, contributing to elevated Treasury yields (10yr 4.732%, 30yr 5.268%) and threatening the AI capex narrative as higher discount rates weigh on long-duration equities. The debt burden complicates Fed policy and raises stagflation fears. This development reinforces the yield-driven selloff and is a key macro factor for the week ahead. Treasury buyback analysis highlights limits to yield ceiling.