Laura Adams

Treasury sold $69 billion of two-year notes at a 4.787% high yield on September 22, 2026, the highest since May 2024 and 79 basis points above the Fed's new target range.

The Fed raised the federal funds target range a quarter point to 3-3/4 to 4 percent, lifting the prime rate to 7.00 percent effective September 17, its first increase since July 2023.

Federal debt fell to $40.048 trillion on September 10, down $127.9 billion from the August 31 record, as Treasury drew its cash balance at the Fed down by $205.4 billion.

Treasury sold $22 billion of 30-year bonds at 5.308 percent on September 10, the highest stop since 2001, and indirect bidders took a record 79.3 percent.

Treasury held $967.9 billion at the Fed in the week ended September 2, a four month high, pulling bank reserves to $2.895 trillion, their lowest in 39 weeks.

U.S. employers added 162,000 jobs in August and the BLS revised June and July up by a combined 55,000, erasing the reported July decline days before the September 15-16 FOMC meeting.

US federal debt closed August at $40.18 trillion, up $404.02 billion from July 31, the largest single-month rise of fiscal 2026 and the first month-end close above $40T.

Treasury sold $44 billion of seven-year notes at 4.512% on August 27, the highest stop for the maturity since December 2024, as indirect bidders pulled back.

Real consumer spending was flat in July as goods outlays fell $49.9 billion and services rose $86.2 billion, with core PCE inflation stuck at 3.3%.

Treasury's average interest rate on all federal debt reached 3.447% on July 31, the highest since June 2009, as low-coupon notes mature into yields above 4%.