# US debt crosses $40 trillion, global markets on edge 2026-08-23T08:59:43+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 2 independent outlets The United States' public debt has crossed $40 trillion for the first time, with the fiscal deficit reaching $432 billion in July, the highest monthly figure since March 2021 and a record for that month, according to a Jefferies research report. NDTV Profit reports that the brokerage sees the 10-year Treasury yield crossing 5% as a potential trigger for greater pressure on US equities, which could also impact Indian markets. The Times of India adds that the fiscal deficit in the first 10 months of the fiscal year reached $1.799 trillion, already exceeding the $1.775 trillion deficit recorded for the whole of FY25. The annualised fiscal deficit-to-GDP ratio rose to 6.1% in July from 5.7% in June, as per Jefferies. Rising Treasury yields and higher government spending are compounding the fiscal strain, with net interest and entitlement spending rising to 98.4% of annualised government receipts. Jefferies notes that the fiscal backdrop is supportive for gold, while rising Treasury yields could make equity valuations vulnerable if the 10-year yield breaches the 5% threshold. The 10-year Treasury auction yield recently reached 4.683%, its highest since 2007. ## Indian Opinion Analysis Both outlets report the Jefferies data neutrally, with no editorial slant. NDTV Profit frames the story as market turmoil with a direct India angle, while The Times of India provides more fiscal detail and context. The coverage is uniform straight reporting. The key implication is that sustained US fiscal strain could keep global borrowing costs elevated, testing equity valuations. Watch the 10-year Treasury yield: a sustained break above 5% would be the trigger Jefferies warns about. ## Coverage Coverage: 2 sources, 2 neutral - ndtvprofit.com (neutral report) Reports Jefferies data without slant, adds India market angle - timesofindia.indiatimes.com (neutral report) Straight report on Jefferies findings with fiscal context This story was synthesised by AI from the 2 sources linked above. Updated: this story now draws on 2 sources. Last updated 2026-08-23T11:01:12+00:00. Tags: 10-year Treasury yield, Indian stock market, Jefferies, RBI, US Federal Reserve Canonical: https://indianopinion.org/us-debt-hits-40-trillion-treasury-yields-risk-market-turmoil/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/us-debt-hits-40-trillion-treasury-yields-risk-market-turmoil/#story-in-brief How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/