Government Bond Rates Reach Highest Level in Decades—Even as Stocks Soar

The interest rate on 30-year U.S. government bonds hit 4.747% on July 31, 2026—its highest since the mid-2000s, per Reuters. That rate is what the government pays to borrow for three decades. Yet the S&P 500 stock index closed at a record on August 13, and the Dow topped 49,000 in January. Borrowing costs are up; stocks keep climbing. That gap matters.