The US budget deficit hit a record in October

The U.S. federal government's budget deficit surged 42.1% year-over-year to $404.1 billion in October, the first month of fiscal year 2027, marking a record for the month. The sharp widening underscores persistent fiscal strain from elevated spending and revenue shortfalls, keeping pressure on Treasury borrowing needs. Investors will watch upcoming Treasury auction sizes and issuance guidance, along with monthly receipts and outlays data, for signs of whether the deficit trajectory is stabilizing or accelerating.