The US federal government recorded a historic $1.36 trillion in interest payments on the national debt for fiscal year 2026, with net interest to outside holders at $1.1 trillion, or 3.4% of GDP. Despite this record debt-service cost and a $1.99 trillion deficit, long-term Treasury bond prices, such as those in the iShares 20+ Year Treasury Bond ETF (TLT), showed little reaction, remaining stable amid investor demand. However, ongoing large deficits mean continued heavy issuance of long-term debt, which could pressure bond prices and yields, posing risks for income-focused investors, especially those nearing retirement. The future trajectory of these bonds depends on economic factors like recession risks and Federal Reserve rate policies.
The iShares 20+ Year Treasury Bond ETF (TLT) holds a market cap of $48.07 billion and a daily trading volume of over 42 million shares on Pluang as of Oct 18, 2026, 00:21 WIB. Despite the record $1.36 trillion interest on the US national debt, TLT's price remains stable at USD 80.05 with a slight 0.06% increase in the last day. Investor activity on Pluang shows a strong buying interest with 81% of orders as buys, reflecting steady demand for long-term Treasury bonds even amid concerns about ongoing deficits and debt issuance.
BlackRock Investment Institute reversed its underweight stance on U.S. Treasuries, upgrading short-term bonds to overweight and long-term bonds to neutral due to attractive yields above 5%. This shift, funded by reducing its U.S. equity holdings from...
Benjamin C. Barry recommends buying the SGOV ETF for cash needed within 12 months due to its nearly 4% yield and low price volatility, making it suitable amid interest rate uncertainty. He rates the TLT ETF a Hold because, despite its attractive 5.7%...
