AI Data Insight
The latest announced US government fiscal spending year-over-year growth rate (Q2 2026) plummeted from the previous value of 5.16% to -8.55%, interrupting the previous positive growth trend. Although the overall spending growth rate turned negative, the high-interest-rate environment has propelled net interest outlays to become the second-largest fiscal burden. After the brief surplus from the tax season fades, the market expects that the massive medium-to-long-term deficit will continue to influence US Treasury yields and risk asset performance.