Global Bond Yields Advanced as U.S. Debt Crossed $40 Trillion

Barry Adams
18 Aug, 2026
New York City

U.S. stocks turned sharply lower amid persistent tensions in the Middle East, and global bond yields advanced as rising concerns over resurgent inflation dominated investor sentiment. 

The S&P 500 Index decreased 0.9%, the tech-heavy Nasdaq Composite decreased 1.1%, and the yield on 10-year U.S. Treasury notes edged up to 4.74%.  

Bond yields in New York, Europe, and Japan advanced on mounting concerns over massive government spending and persistent inflationary pressures. 

The U.S. federal government debt crossed $40 trillion, a new record high, as lawmakers overlook the long-term consequences of rapidly rising overall debt and its impact on borrowing costs and pressure on the U.S. dollar. 

The U.S. debt soared by $10 trillion in just four years and eight months, from $30 trillion on Feb 1, 2022, and jumped by the same amount from $20 trillion on September 8, 2017. 

It took the U.S. government 205 years from the founding of the country to borrow its first $1 trillion, crossing that milestone in October 1981 during Ronald Reagan's presidency.

While it took more than 200 years to accumulate the first trillion dollars, the national debt grows by one trillion dollars every 100 days.  

 

U.S. Movers 

Home Depot increased 1.7% to $343.55 after the specialty retailer reported better-than-expected results in the fiscal second quarter ending on August 2. 

Revenue increased 5.7% to $47.9 billion from $45.3 billion, net income advanced 4.7% to $4.8 billion from $4.5 billion, and diluted earnings per share rose to $4.79 from $4.58 a year ago. 

Comparable sales accelerated to 1.7% from 1.0%, and average ticket rose to $92.50 from $90.01 a year ago, respectively. 

The do-it-yourself retailer guided full-year 2026 total sales to rise between 2.5% and 4.5%, and comparable sales growth to range between flat and 2.0%.  

The company estimated a gross margin for the full year at 33.1% and an operating margin between 12.4% and 12.6%.