Definition
The amount by which the government spends more than it collects in revenue in a year.
The story
The US government ran a deficit of about $1.8 trillion in the 2025 fiscal year, which ended on Sep 30, 2025, according to the Treasury. It covers the gap by borrowing: selling Treasury bills, notes and bonds.
Why markets watch it
Bigger deficits mean more Treasury borrowing, which is one reason bond markets watch fiscal news and the quarterly refunding.
Connects to
National debtFiscal policyQuarterly refundingTreasury auction
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms