US Treasury Sells Bonds at Record-High Interest Rate Amid National Debt Crisis

The US Treasury has sold 30-year government bonds at an interest rate of 5.216%, its highest borrowing cost in over two decades, as the national debt nears $40 trillion.

This marks a significant increase from Wednesday's auction, where 10-year US bonds were sold at an interest rate of 4.683%, the highest since 2007 for Treasuries of that duration.

According to James Athey, a fund manager at Marlborough, 'the US is running a record peacetime deficit while unemployment is low, and the economy is still growing at around trend.'

This has led to concerns about the credibility of the Federal Reserve (Fed) and its new chairman Kevin Warsh, who is accused of failing to raise interest rates in the face of higher inflation caused by the war in Iran.