Can you smell 27000? Can you smell what the Trumpster is cooking?

Any attempt to discuss the rise in debt under Obama without acknowledgement of the recession is extremely uninformed, and really not helpful, unless you like masturbating to conjured up Trump achievements.

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.

I will note that I think you mixed up yields and rates in your post. Rates are lower in other countries than in the US, and in some countries (last I looked), there are actually negative rates. So, for example, a corporation can buy German bonds at a negative rate (guaranteed loss if they keep until maturity) or US bonds at a positive rate (guaranteed very low gain if they keep until maturity. So, some transfer their money from euros into dollars (driving up the value of the dollar on the market) and buy US bonds. (Some people are still buying German bonds at negative rates, but I admit I don't get it. I suppose they think that is a safer form of wealth than money deposited in a private bank.)

When the dollar goes higher, Americans can buy more imported products, but it is harder for American businesses to sell abroad. A lower dollar helps American businesses marketing around the world. So, lower rates are good for that. Also, lower rates make borrowing easier...which is good in the short term (so the US markets and presidents of both parties love it) but potentially (almost certainly) bad in the long run.

Yields are a different matter. They are more an indication of confidence in the US, I think? I'll let someone else comment on that.

I think ultra-low rates do fuel a market bubble. I hope the bubble lasts through the next election. Obama was a beneficiary of the housing bubble popping before the 2008 election. Bush didn't make the bubble; both parties allowed it to happen; the timing of the pop possibly affected the election, though. But, make no mistake, any bubble is bad if it gets too big. We had a major money supply bubble build up under Obama (Supported by McCain & Bush), and that has still not been undone.

If the Dems were lucky enough to have that blow up sooner, Bush might not have been a two term president.