U.S. Treasury yields have surged dramatically, with 5-year notes reaching 5.033% in September 2024—the highest since 2006—driven by strong economic growth, massive federal deficits exceeding $40 trillion, and declining foreign demand for U.S. debt rather than inflation alone. Interest expenses are projected to hit $1.27 trillion in fiscal 2026, consuming 23% of government revenue, while Treasury Secretary Bessent's borrowing-cost reduction efforts have been undermined by Fed rate hikes and a potential buyer's strike among foreign central banks.