2011   Financial Report of the United States Government

Notes to the Financial Statements

Note 14. Federal Debt Securities Held by the Public and Accrued Interest

Federal Debt Securities Held by the Public and Accrued Interest
(In billions of dollars)
Balance
September 30,
2010
Net
Change
During
Fiscal
Year
2011
Balance
September 30,
2011
Average Interest
Rate
2011
2010
Treasury securities (public):
Marketable securities:
  Treasury bills 1,783.7 (308.1) 1,475.6 0.1% 0.2%
  Treasury notes 5,252.6 1,154.4 6,407.0 2.3% 2.6%
  Treasury bonds 846.0 170.4 1,016.4 5.8% 6.1%
  Treasury inflation-protected securities (TIPS) 593.6 111.7 705.3 1.9% 2.2%
Total marketable Treasury securities 8,475.9 1,128.4 9,604.3    
Nonmarketable securities 546.9 (24.2) 522.7 2.8% 2.8%
  Net unamortized premiums/(discounts) (33.9) 4.4 (29.5)    
Total Treasury securities, net (public) 8,988.9 1,108.6 10,097.5    
Agency securities:
  Tennessee Valley Authority 23.4 1.0 24.4    
  All other agencies 0.3 - 0.3    
Total agency securities, net of
unamortized premiums and discounts
23.7 1.0 24.7    
Accrued interest payable 47.4 4.5 51.9    
  Total Federal debt securities
    held by the public and accrued     interest
9,060.0 1,114.1 10,174.1    
Types of marketable securities:
Bills—Short-term obligations issued with a term of 1 year or less.
Notes—Medium-term obligations issued with a term of at least 1 year, but not more than 10 years.
Bonds—Long-term obligations of more than 10 years.
TIPS—Term of more than 5 years.

Federal debt securities held by the public outside the Government are held by individuals, corporations, State or local governments, FRBs, foreign governments, and central banks. The above table details Government borrowing primarily to finance operations and shows marketable and nonmarketable securities at face value less net unamortized discounts including accrued interest.

Securities that represent Federal debt held by the public are issued primarily by the Treasury and include:

Section 3111 of Title 31, United States Code (U.S.C.) authorizes the Secretary of the Treasury to use money received from the sale of an obligation and other money in the General Fund of the Treasury to buy, redeem, or refund, at or before maturity, outstanding bonds, notes, certificates of indebtedness, Treasury bills, or savings certificates of the Government. There were no buyback operations in fiscal years 2011 and 2010.

Gross Federal debt (with some adjustments) is subject to a statutory ceiling (i.e., the debt limit). Prior to 1917, the Congress approved each debt issuance. In 1917, to facilitate planning in World War I, Congress established a dollar ceiling for Federal borrowing. On December 28, 2009, Public Law 111-123 was enacted, which increased the statutory debt limit to $12,394.0 billion. On February 12, 2010, Public Law 111-139 was enacted, which increased the statutory debt limit to $14,294.0 billion. On August 2, 2011, Public Law 112-25 was enacted, which increased the statutory debt limit to $14,694.0 billion on August 2, 2011, and to $15,194.0 billion on September 22, 2011. Public Law 112-25 also established procedures to further increase the statutory debt limit. Prior to the enactment of Public Law 112-25, Treasury faced a period that required it to depart from its normal debt management procedures and to invoke legal authorities to avoid exceeding the statutory debt limit. As of September 30, 2011, and 2010, debt subject to the statutory debt limit was $14,746.6 billion and $13,510.8 billion, respectively. The debt subject to the limit includes Treasury securities held by the public and Government guaranteed debt of Federal agencies (shown in the table above) and intragovernmental debt holdings (shown in the following table).

Intragovernmental Debt Holdings: Federal Debt Securities
Held as Investments by Government Accounts as of September 30, 2011, and 2010
(In billions of dollars)
Balance
2010
Net
Change
During
Fiscal Year
2011
Balance
2011
Social Security Administration, Federal Old-Age and Survivors Insurance Trust Fund 2,399.1 93.4 2,492.5
Office of Personnel Management, Civil Service Retirement and Disability Fund 780.4 23.4 803.8
Department of Defense, Military Retirement Fund 282.0 44.0 326.0
Department of Health and Human Services, Federal Hospital Insurance Trust Fund 279.5 (33.6) 245.9
Social Security Administration, Federal Disability Insurance Trust Fund 187.2 (25.2) 162.0
Department of Defense, Medicare-Eligible Retiree Health Care Fund 142.3 19.4 161.7
Department of Health and Human Services, Federal Supplementary Medical Insurance Trust Fund 71.0 (0.6) 70.4
Department of Energy, Nuclear Waste Disposal 47.6 1.0 48.6
Federal Deposit Insurance Corporation Funds 47.0 (1.4) 45.6
Office of Personnel Management, Postal Service Retiree Health Benefits Fund 42.1 1.6 43.7
Office of Personnel Management, Employees Life Insurance 37.6 2.1 39.7
Department of the Treasury, Exchange Stabilization Fund 20.4 2.3 22.7
Pension Benefit Guaranty Corporation Fund 19.9 1.1 21.0
Office of Personnel Management, Employees Health Benefits Fund 16.2 3.0 19.2
Department of State, Foreign Service Retirement and Disability Fund 15.9 0.5 16.4
Department of Transportation, Highway Trust Fund 24.5 (8.2) 16.3
Department of Labor, Unemployment Trust Fund 18.7 (2.7) 16.0
National Credit Union Share Insurance Fund 9.3 1.4 10.7
All other programs and funds 97.6 3.5 101.1
  Subtotal 4,538.3 125.0 4,663.3
    Unamortized net (discounts)/premiums 38.4 9.2 47.6
      Total intragovernmental debt holdings, net 4,576.7 134.2 4,710.9

Intragovernmental debt holdings represent the portion of the gross Federal debt held as investments by Government entities such as trust funds, revolving funds, and special funds. This includes trust funds that are earmarked funds. For more information on earmarked funds, see Note 24—Earmarked Funds. These intragovernmental debt holdings are eliminated in the consolidation of these financial statements.


Last Updated:  February 16, 2012