New York, NY – The United States’ national debt has skyrocketed to $34.7 trillion, increasing significantly over the past few years. This rapid rise in debt has raised concerns about the sustainability of the country’s fiscal trajectory. As the economy continues to recover from the pandemic-induced slowdown, the government has been borrowing at an unprecedented rate to fund its operations.

Despite the alarming increase in debt, all Treasury securities issued by the government have found buyers. The holders of these securities are diverse, ranging from government entities to foreign investors and individuals. The total amount of Treasury securities held by the public stands at $27.6 trillion, with the remaining $7.1 trillion held by US government funds, including pension funds and the Social Security Trust Fund.

Foreign holders account for a significant portion of the debt, with $8.0 trillion held by private sector entities and central banks around the world. While some countries have been reducing their holdings, others have been increasing their exposure to US debt. However, the share of foreign holdings as a percentage of the total debt outstanding has decreased over the years.

The rest of the debt is held by various US entities, including mutual funds, the Federal Reserve, banks, state and local governments, pension funds, insurance companies, and other investors. These stakeholders play a crucial role in the functioning of the Treasury market, providing liquidity and demand for government securities.

The dispersion of Treasury securities among different types of investors underscores the importance of maintaining stable demand for US debt. Changes in interest rates and market conditions can impact the value of these securities, affecting the overall stability of the financial system. It remains to be seen how long the current level of debt can be sustained and what implications it may have for future economic growth and stability.