Mortgage holders know interest rates have risen over the past year. But they’re not alone: governments and business borrowers are facing the same pressure. In the United States, 10-year interest rates sit around 4.7%, surging nearly half a per cent just this year, while the benchmark 30-year bond is near a two-decade high. In the UK, 10-year bond rates on Tuesday hit the highest level since the global financial crisis. In Australia, the Reserve Bank of Australia also lifted the cash rate to fight inflation. That government now has to offer investors more than 5% on its 10-year bonds, which hit a 15-year high on Tuesday after a long period of low interest rates since the global financial crisis in 2008. Higher rates mean higher interest payments for governments too, leaving less room for other spending or for tax cuts. This trickles down to state and local communities.
Read more: Kansas Reflector
