Yield on All U.S. Treasury Bonds, 5–30 Years, Now above 3%

treasuries_2022-05-05

Today, the yields on U.S. Treasury bonds with maturities of 5, 10, and 30 years all spiked upward more than 5% to yields in excess of 3%. As recently as July 2020, yield on the 10 year Treasury was as low as 0.536%. As of November, 2021 [PDF], the average interest rate on U.S. federal debt outstanding was less than 2%. As this debt is rolled over at the now-prevailing interest rates, interest paid to service the debt will rise, further increasing the deficit. This is how a “debt spiral” gets started.

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