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Fri, 21 Aug 2026

Fri, 21 Aug 2026 US borrowing costs rise as attempts to ease rates prove short-lived

Economists said there were ongoing concerns over the level of borrowing as national debt passed $40tn.

* Despite government efforts to lower borrowing costs, long-term interest rates in the US rose again.
* The Treasury Department had announced plans to buy back debt and boost demand for bonds, but this effort only provided short-term relief.
* Economists say ongoing concerns over national debt and inflation have led investors to demand higher returns on bonds.
* The 30-year bond yield has risen to around 5.27%, up from a near two-decade high of 5.34% earlier in the week.
* Global borrowing costs have spiked due to high oil prices, large-scale corporate borrowing, and tax revenues being outstripped by public spending.
* The US national debt has passed $40tn, having more than doubled in a decade under both Republican and Democratic administrations.
* The dollar weakened against other currencies as investors sought safe-haven assets amidst market volatility.