Long-Term Government Bond Rates Hit Highest Level Since 2007

The interest rate on 30-year US government bonds reached 5.327% on August 18, 2026 — the highest since 2007 — up from 5.13% in May. Oil above $90 and Iran war fears drove the sell-off, which spread to Japan and Europe. When bond rates rise, bond prices fall, and borrowing gets pricier for mortgages and businesses.