Treasury Yields Hit Multi-Decade Highs as Federal Deficit Nears $2.1 Trillion

On August 18, 2026, U.S. Treasury yields reached multi-decade highs as the federal budget deficit neared $2.1 trillion, per Fox Business. Higher yields raise the government's rolling borrowing costs on an outstanding debt stock approaching $40 trillion, worsening net interest expense. For households, rising Treasury yields feed directly into mortgage and consumer-loan rates.