Shocking stat of the day: Annual interest expense on US public debt could rise to as much as 30% of government revenue by 2036, an all-time high. This would occur if the 10Y Treasury yield averages 4.70% over the next decade, or ~55 basis points above the current projection of the Congressional Budget Office. This means nearly 1 out of every 3 dollars of government revenue would go toward servicing debt, TRIPLE the level seen in 2022. Under this same scenario, net interest costs as a % of GDP would rise to a record 5.3% by 2036, DOUBLE the levels seen in 2023. Meanwhile, the 10Y Treasury yield briefly touched 4.68% on Tuesday before easing to 4.56% on Friday. The US government needs lower rates more than anyone.(The Kobeissi Letter)