US National Debt Surpasses $40 Trillion as Bond Market Sees Surge in Tech-Focused Issuance

The US national debt has surpassed $40 trillion, a record high that is drawing significant attention to the bond market. The Treasury Department announced buyback operations to bolster secondary-market liquidity and temper volatility as 30-year bond yields hit levels last seen in 2007.

Major tech firms, semiconductor manufacturers, and AI operators are flocking to the investment-grade bond market to fund capital-intensive artificial intelligence infrastructure. This surge in corporate debt issuance has led to a significant reshaping of market sentiment, drawing capital into long-term bonds while raising the floor for borrowing costs across the US economy.

The high-grade corporate bond market has experienced a surge in volume, marking one of its busiest stretches for deal activity since early this year. Companies like Advanced Micro Devices (AMD), Nvidia (NVDA), and Alphabet (GOOG, GOOGL) are ramping up debt offerings to fund their escalating AI capital expenditure plans.

Capital expenditure by major tech hyperscalers is projected to reach 2.5% to 2.8% of US GDP in 2026 and 2027, with 2026 capex estimates revised upward from $515 billion to $775 billion. Technology companies are increasingly turning to complex debt financing, with incremental debt funded roughly 32% of hyperscaler capital expenditures on a trailing basis by mid-2026.