U.S. Federal debt reaches $40 trillion; public debt $32.3 trillion

Federal gross debt hit $40 trillion with debt held by the public at $32.3 trillion, highlighting the U.S. fiscal backdrop. While debt levels are a structural concern for long-term dollar valuation and real rates, this is a data point, not a catalyst. USD traders should focus on hawkish Fed repricing and September rate expectations driving near-term moves.