US FISCAL 2026 DEFICIT WIDENS TO $2 TRILLION

The US federal deficit totaled $2.0 trillion in fiscal year 2026, $218 billion wider than fiscal 2025, according to the Congressional Budget Office's latest Monthly Budget Review. Outlays rose 6% to $7.4 trillion while revenue grew only 3% to $5.4 trillion, with net interest on the debt among the fastest-growing costs. That gap between spending and tax growth keeps pressure on long-dated bonds like $IEF as Washington keeps financing the shortfall with more debt. The deficit widens right as Treasury yields were already running hot.