US federal debt tops $40T; Treasury doubles bond buybacks but long yields remain high

US federal debt surpassed $40 trillion on August 19, 2026, prompting the Treasury to double its bond buyback program to at least $4 billion targeting long-term bonds. Despite this, long-term yields briefly fell but quickly rose again, reflecting investor concerns over rising debt and fiscal sustainability. The US debt-to-GDP ratio is 125.8%, with interest payments exceeding major government spending categories. Experts note that buybacks are small relative to new debt issuance, and investors demand higher yields due to risks and competing capital needs. This environment influences investment strategies, with firms like Berkshire Hathaway focusing on businesses with pricing power to hedge against fixed income risks.