U.S. debt hits $40T as long-term Treasury yields surge, putting TLT and other bond ETFs under pressure while boosting the case for short-duration funds.

The federal debt reached $40 trillion as the government adds red ink at a rapid rate. That's leading nervous investors to demand higher interest rates —pushing up borrowing costs…

U.S. Treasury bond sell-off coincided with the nonpartisan Congressional Budget Office's release of statistics that the national debt is about to cross $40 trillion.

U.S. to Buy Back More Longer-Term Bonds