US Treasury Interest Costs Reach $1.267 Trillion in First 11 Months of Fiscal 2026

The US Treasury said gross interest on Treasury debt securities reached $1.267 trillion in the first 11 months of fiscal 2026 through August, up from about $1.124 trillion in the same period of fiscal 2025. According to NS3.AI, August alone accounted for $97.769 billion in gross interest outlays, or more than $3.15 billion a day. The Kobeissi Letter said the current pace points to more than $1.3 trillion for the full fiscal year. Markets were pricing a 53% chance of another Federal Reserve rate hike in October.