I think you're being a bit misleading. It's not some issue related to government bonds specifically, it's about long-term bonds generally. IIRC, SVB went under because it took up a large position in long term mortgage-backed securities not treasuries. If it had instead invested in short-term treasuries, it would have been fine.

Government debt is the safest, and if you buy any other kind of debt, you'll want to be paid a premium for the extra risk you're taking. If interest rates are going up, you don't want all your money in long-term bonds.