If the US government paid off its debt, it could disrupt the entire bond market, as Treasury bonds are among the most common bonds for investors and the majority of the national debt is in bonds.

Treasury bonds, notes, and bills are critical vehicles for the federal government to raise money for public expenses and manage the national debt

For investors, they're all usually considered low-risk options since they’re backed by the federal government.

Nearly 70% of the US government’s debt is domestic

This includes intragovernmental holdings like the Social Security Trust Fund and investments from US citizens, banks, and mutual funds. About 30% is foreign-held, with countries like Japan and China as major creditors, investing in US Treasury securities due to their perceived safety.

The bond market is where bonds and other debt securities are traded

Bonds are fixed-income investments allowing individuals to lend a specific amount of money to a large entity, like a government or corporation, for a set amount of time in return for interest paid out over the life of the loan. The bond market is widely considered a key economic barometer.

The US has carried debt since 1791

After the Revolutionary War, the US owed $75M to nations like France. Debt builds when spending exceeds revenue, funding programs, wars, and economic recovery efforts. Most debt is domestic, like Social Security bonds, with foreign nations also holding a share.

The national debt is the total amount the US government owes its creditors

This US Treasury page explains what the national debt is, how it accumulates from annual deficits, and why rising debt can affect interest costs, fiscal flexibility, and long-term economic stability.

The national debt consists of public debt and intragovernmental debt

The national debt consists of money owed to private investors who have purchased Treasury securities and money owed by one sector of the government to another. They’re respectively called public debt and intragovernmental debt.

The debt ceiling is the threshold Congress sets for federal borrowing

If the US reaches this limit and Congress doesn’t pass a bill to raise it, the government cannot repay its debts. Suddenly, investors would lose assurance that the Treasury would make good on its securities, which have long been considered the safest type of investment.

How much the federal government pays in interest on the debt

A significant portion of annual funding goes to servicing the federal government's public debt, which stood at $36T in 2025. That amount required roughly $1T in interest payments just for the year.

Investors can buy three main types of bonds: government, corporate, and municipal

Each type has variations of its bond offerings with different interest rates, loan lengths, maturity dates, and terms. Each type also carries its own risks and rewards.

The national debt of the US has been trending upward for over a century

The national debt of the US fluctuates. A federally managed database is updated daily and shows how the debt constantly changes over a 24-hour period. It’s broken down by what the government owes individual investors (debt held by the public) and what’s due to one sector of the government by another (intragovernmental holdings).

Investors collectively own $28T in US Treasury securities

The 10-year Treasury yield is a central measure of the health of the economy, shaping how much both the government pays on its debt and the cost of borrowing for the private sector. This explainer provides stats and explainers on the important metric.

Bond yields are the returns investors earn from a bond's interest—and they're a key economic barometer.

The US is one of two countries that abide by a predetermined borrowing limit

When the Treasury hits this “debt ceiling,” Congress has to pass a bill increasing the borrowing threshold. Failure to do so may lead to a financial crisis.

What are Treasury yields?

Treasury yields are the interest rates that the US government pays to borrow money for different lengths of time. Specifically, Treasury yields are interest rates on US government debt. They reflect economic outlooks and inflation expectations. Learn more about Treasury yields here.

There are three main ways to start investing in the bond market

Invest in the boind market through a brokerage, mutual fund or ETF, or the US government. Each has different steps and terms to follow, from starting rates to opening specific accounts. Some bonds are relatively easy to purchase, but the process differs depending on the type of bond you want.

Over three-fourths of US debt is held by domestic and foreign investors

Of the domestic investors, the Federal Reserve is the largest holder. And, of the foreign investors, Japan is the largest holder, followed by China.

Investing in bonds comes with a few risks

Think: changes in interest rates that impact the bond’s value, or a bond issuer completely defaulting on a loan. There are steps investors can take to lower their initial and future risk when investing in the bond market, such as checking a company's bond rating before investing.

When the US hits the debt ceiling, the Treasury uses emergency measures to avoid default

After the US reached its debt ceiling in January 2023, the Treasury deployed "extraordinary measures" to keep paying obligations. This article explains the steps, how they work, and why they last only for a limited time. (Some readers may experience a paywall.)

Local governments borrow money for long-term projects by issuing municipal bonds

When a city needs to build a school, a road, or a water treatment plant, it usually issues a municipal bond—borrowing money from investors to be paid back over time. The market for these bonds now exceeds $4T.

What happens if the US doesn't pay its debt?

A video created during the debt ceiling debates of 2021 outlining what would happen if the US failed to meet its debt obligations. Its lessons are applicable to today's debates.

The US government is legally allowed to borrow money from the Social Security Trust Fund surpluses as long as it issues Treasury bonds to the Trust Fund in return and repays those bonds with interest when Social Security needs the money to pay benefits.

The debt ceiling is a legal cap on how much money the US government can borrow

Set by Congress, the debt ceiling limits total federal borrowing. This guide explains why the cap was created, how it has evolved, and why raising or suspending it has become a recurring political flash point.

Minting a coin that can pay off the federal debt has been proposed as a quick fix to rampant borrowing

It’s uncertain how financial markets would react to such a large cash injection. Some economists warn it could trigger massive inflation. Others say the nation needs a clean slate.

Some economists argue the national debt is not a critical concern

The US has the largest national debt and one of the highest debt-to-GDP ratios. These vitals have long been considered a sign of poor fiscal health, but economists are beginning to shift their attention to interest rates to evaluate national debt.

Are I-Bonds a good investment?

I-Bonds are savings bonds issued by the US government that can help protect savings from inflation. While that sounds positive, I-Bonds have a few disadvantages, too—for instance, these bonds have to be held for at least a year before you can cash out.

Track how much the US government has spent on bailouts.

Total national debt as of yesterday

Debt to the Penny is the total debt of the U.S. government and is reported daily. It is made up of intragovernmental holdings and debt held by the public.

The national debt is growing at a faster rate than the economy

“The federal government faces an unsustainable fiscal future,” according to this bleak 2025 report on the nation’s budget from the US Government Accountability Office. If unaddressed, the country’s debt could double its gross domestic product, warns the nonpartisan agency. For individuals, this may mean stagnant wages, higher borrowing costs, and more expensive goods.

The New York Stock Exchange wouldn't have been made if not for municipal bond sales

The Funding Act of 1790 nationalized and consolidated the debt held by the 13 colonies to be sold off in the form of bonds.

The US national debt has become more important in recent months

In a moment of deep economic uncertainty, the national debt now matters more than ever. Listen to this podcast to find out why and also explore answers to questions like, "Who does the US owe money to and why?"

The current federal budget, deficit, and debt, in charts

The US Treasury regularly publishes updated data on the federal budget, and this site hosts visualizations of that data. See reports on spending, revenues, deficits, and where the national debt stands.

The US Government sells two types of savings bonds: EE bonds and I bonds

EE bonds have fixed interest rates that the buyer is informed of when they purchase the bond. I bonds, however, earn a rate that can change every six months. A comparative chart details the most significant differences between EE bonds and I bonds.

Companies sometimes issue corporate bonds to raise capital

These bonds offer investors regular interest payments in addition to the return of the principal amount at maturity. They allow companies to raise capital without losing ownership.

The federal deficit is the gap between what the US spends and what it collects

This US Treasury page explains how the federal deficit occurs when annual spending exceeds revenue, shows the current fiscal-year shortfall, and tracks how deficits rise and fall with economic conditions and policy choices.

Key moments that shaped the national debt include the Civil War, both World Wars, the 2008 recession, and the COVID-19 pandemic

The US national debt has grown alongside wars, recessions, and policy shifts—from $75M after the Revolutionary War to over $34T today. This visual timeline walks through key moments that shaped the debt.

The federal government has spent more money annually than it has collected every year since 2022

The government borrows money to cover this deficit, which increases the national debt. It’s the fourth most expensive spending category in the US budget.