New Delhi, Aug. 21 -- Rising US fiscal pressure and higher long-term Treasury yields are emerging as key concerns for financial markets, with US government debt crossing the USD 40 trillion mark, according to a report by global financial services firm Jefferies.

US total public debt rose 7.8 per cent year-on-year to USD 40.05 trillion on August 18, according to the report. At the same time, the US fiscal deficit continued to widen, with the monthly deficit rising to USD 432 billion in July, the highest deficit recorded for the month.

For the first 10 months of fiscal year 2026, the US deficit stood at USD 1.799 trillion, already exceeding the full-year FY25 deficit of USD 1.775 trillion. The annualised fiscal deficit-to-GDP ratio also r...