Wed Sep 25 03:06:39 UTC 2024: ## US National Debt Explodes to $35.3 Trillion: Who’s Buying the Bonds?

**WASHINGTON, D.C.** – The US national debt has reached an unprecedented $35.3 trillion, a staggering increase of $12.0 trillion since the beginning of 2020. This dramatic rise, occurring even as the economy has grown, has sparked questions about who is buying the ever-growing amount of Treasury bonds being issued.

While the Federal Reserve has been offloading its holdings of these bonds, other investors are stepping in to fill the gap. This indicates a continued appetite for US debt, despite the substantial increase in issuance. However, experts warn that this reliance on external buyers raises concerns about potential future pressures on the US economy.

The surge in national debt can be attributed to increased government spending on programs like COVID-19 relief and infrastructure projects, coupled with a decline in tax revenue during the pandemic. This has led to an increase in the issuance of Treasury bonds, which are used to finance this spending.

The growing national debt has implications for both the US economy and global markets. While the current appetite for US bonds is a positive sign, it remains to be seen how long this trend will continue. As the debt continues to grow, the burden of interest payments will increase, potentially crowding out other government spending and impacting economic growth.

The situation highlights the delicate balancing act faced by policymakers as they navigate the complexities of managing the national debt while maintaining economic stability.

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