US Long-Term Borrowing Costs Hit 25-Year High

The United States sold new bonds this week. These bonds last for 30 years. The cost to borrow money was very high. It was the highest cost since 2001. That is 25 years ago.

A bond is a way for a government to borrow money. People buy the bond. The government pays them back later, with extra money called interest. When interest is high, it costs the government more to borrow.

The high cost happened because of fears about inflation. Inflation means prices go up. When people worry about inflation, they want more interest for their money.

At the same time, some good news came for software companies. Software is computer programs that help people work. A company called Workday makes software for money and staff jobs. News came out that Workday might be bought by another company. This is called a takeover.

After this news, shares in other software companies went up too. A share is a small part of a company that people can buy. When shares go up, the company is worth more money on the stock market. The stock market is where people buy and sell shares.

Another company named Sage was also part of the news. Sage makes business software too. Investors watched Sage closely after the Workday news.