Bitcoin govt bonds?

Lets imagine its the future, fiat is gone mostly, and you are a government who ain't got no volcanoes to mine btc..

You need BTC to fund things like infrastructure and some basic social securities. So you try to raise BTC on the markets through "BTC bonds" I guess?

These bonds would have to yield a coupon and interest to the lender at the end right ?

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But unlike fiat, BTC has a limited supply - so then doesn't this all fall apart assuming everyone across the globe is borrowing BTC ? (as there will never be enough BTC to pay back the interest in BTC)

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Correct me if I am wrong but the only way this can be squared is by the BTC value always going up. This would mean that really the borrower would just pay back the SAME amount of BTC which would now be worth more and act like as if interest was actually paid back to the lender.