The size of the recent fiscal and monetary stimuli (is that a word?) has many concerned about the spiraling national debt. Luckily, a biproduct of the financial crisis has been extremely low short term yields on treasury securities. As of this morning (about 12:30 ET) Bloomberg lists the following as the yields on U.S. Treasury securities.
Notably, the yield on the three month T-Bill is 1 basis point. 1. That's 0.01% when it is annualized. What does that mean for the Treasury? It means that the cost of financing $10,000 for 90 days is ... wait for it ... 25 cents. Put another way, if Treasury could rollover the entire, $10.6 trillion national debt for three months (which of course they couldn't because the demand curve for this stuff has to slope downward somewhere) it would cost them a mere $265M in interest. That is about 0.00184% of the current estimate of annual GDP.
