Loading ...What you said makes perfect sense. But to me this whole system makes no sense. They lie all the time. Make us think the system is normal, and the bonds are being sold at a normal (not rigged) auction. And the auction determines the rates.
Another thing to keep in mind. Because of the excess printing and gov’t supported industries, there are way too many people and businesses that have TONS and TONS of money, and there is no place else to put it.
You could say the excess money supply is being shoved and forced into savings of various places. Then its somebody’s liability to be responsible for it. In my Schwab account all sweep funds (idle cash) go into treasuries. If they keep selling off stocks, that alone could push rates lower.
Its no more too much money chasing too few goods. Its 10 pounds of money shoved into a 5 pound bag. For all we know the Fed may be struggling to hold rates UP where they are. Falling rates may be against their will. I heard in Europe rates are barley above zero. Figure THAT one out.
The whole system is distorted. The 18 to 25 year olds have nothing, can’t leave home, can’t spend and contribute to society. And the other half has more money than they could spend in two or three lifetimes.
The greedy domestic businessman BOZOS running things after 1970 couldn’t have a normal inflation adjusted adequate minimum wage anymore. Foreign competition. Min Wage like 1967 would require $26/hr today.