Treasury yields hit highest level since 2007 as IMF warns on interest costs

(The Center Square) – The federal government has spent more on net interest than on Medicare or the military so far this fiscal year, and borrowing costs climbed again Wednesday as Treasury yields hit their highest levels in nearly two decades.

Net interest on the federal debt reached $1.05 trillion in the first 11 months of fiscal 2026, up 12% from a year earlier, according to the Congressional Budget Office's monthly budget review. Medicare spending totaled $976 billion, and Defense Department military spending totaled $833 billion.