internationally. The rates are impacted by other factors beside supply and demand. You are right, why buy treasuries at just under 2% when you can buy a high dividend stock that is kicking off 5%. Some people don’t like risk and feel safer in US bonds and treasuries.
There are a couple issues here. The US is the world’s reserve currency. All commodities are bought and sold in dollars. So every country must buy dollars to maintain their currency balances. Secondly, a lot of EU countries at in or close to a recession. So they will swamp Europe with Euros that will lower Bund rates in Germany and others making US treasuries more attractive.
Trump wants the Fed to response since a stronger dollar weakens US exports. Imagine paying Germany to buy 47% Bunds.
So with the highest interest rates being paid and the dollar so strong it’s hard for the US to compete against other countries that are manipulating their currencies.