Rob Haworth, senior investment strategy director for U.S. Bank Asset Management, said bond markets have not signaled widespread alarm over rising U.S. debt, even as the national debt has exceeded $40 trillion.
"Markets recognize the fiscal challenge, but bond prices do not point to broad disruption," Haworth said. "Investors will most likely see concern about rising debt first in the Treasury market, where weaker demand would push yields higher."
Haworth oversees investment strategy for a major asset management division. His views on fixed-income markets carry weight among institutional investors and wealth advisors facing macroeconomic shifts.
The U.S. national debt has more than doubled over the past decade, rising from $19.4 trillion in 2016. The government finances annual deficits by selling Treasury bills, notes and bonds.
Haworth emphasized that investors should focus on how sustained borrowing influences interest rates, federal budget choices and market confidence. He noted that economic growth, inflation and Federal Reserve policy remain the primary drivers of market moves.
The higher interest rate environment has increased the cost of servicing the national debt. The average interest rate on marketable U.S. Treasuries reached 3.44 percent as of July 31, 2026, compared with 1.42 percent in January 2022—a 142 percent increase in borrowing costs over four and a half years.
Haworth attributes much of the rise in longer-term Treasury yields to inflation uncertainty, geopolitical risk and shifting policy expectations rather than broad investor rejection of U.S. government debt.
Higher borrowing rates reduce federal budget flexibility as older, lower-yielding securities mature and are replaced with new, higher-yielding debt. Unless tax revenue increases or other spending decreases, this dynamic constrains lawmakers' options.
Historically, increased government borrowing can boost corporate revenues and profits through higher spending. However, long-term consequences—such as competition with private borrowers for available savings—remain a concern.
On Oct. 5, 2026, major U.S. equity indices gained ground. The Nasdaq rose 1.0 percent to 27,476, the S&P 500 climbed 0.8 percent to 7,781, and the Dow Jones Industrial Average added 0.3 percent to 51,331. Thirty-year Treasury borrowing costs eased to 5.18 percent.
