[The cumulative U.S. budget deficit in the first 11 months of fiscal year 2026 reaches $1.96 trillion] September 12th, the U.S. federal government’s budget deficit in the first 11 months of this fiscal year reached $1.96 trillion, one of the highest levels on record. Treasury Department data released on Friday showed the deficit fell slightly in the 11 months to August from $1.97 trillion in the same period in 2025. Looking at August alone, the fiscal deficit gap was US$166.8 billion. The last month of the fiscal year, September, usually results in a surplus due to corporate tax payment deadlines. The widening deficit is partly due to rising debt interest payments, and rising U.S. bond yields are one reason for higher interest costs. Treasury data shows that as of the end of August, the average interest rate on tradable U.S. Treasury bonds rose to 3.48%, more than 2 percentage points higher than five years ago. This average rate is expected to continue to rise as low-yield bonds mature and the Treasury has to refinance at higher costs.