US Government Bond Rates Exceed 5% for Three Consecutive Years

U.S. government bond rates have exceeded 5% for three consecutive years. The 30-year U.S. bond rate has risen from 5% in July to 5.5%. The 10-year interest rate, which serves as a benchmark, surpassed 5% on September 16, and the 5-year U.S. bond rate reached 5% on September 24.

The average interest rate on 10-year U.S. bonds from 1962 to 2026 is 5.8%, according to the Federal Reserve Bank of St. Louis. However, high interest rates in the United States were common in the 1980s and 1990s, and after 2000, the era of low interest rates has been prevalent.

The rise in interest rates is unusual because it occurred during a time when U.S. power was not at its peak. The relationship between war and interest rates also changed. Interest rates did not rise as much during the wars in Afghanistan and Iraq in 2003, but they did rise sharply during the Vietnam War.