[pfony1]

I think someone should point out to the Fed that the SUPPLY of long-term government bonds is "low", by historical standards.

This limited supply has the effect of keeping bond prices "high", by historical standards. And THIS has the effect of keeping long term interest rates "low", by historical standards.

If the Fed REALLY wanted higher long term rates, it could simply ask the Treasury to issue more long-term bonds. (Why that has NOT happened is a question for another day...)

Now...

Where do I go to pick up my "Nobel"?

[Moonman62]

Good point, and I believe they've floated the idea of selling 30 year bonds again. But remember it's a global market. The French government recently issued 50 year bonds. Another "conundrum" is the low rates are showing up in 10 year and 5 year notes, too.

Another factor is corporate debt. There isn't as much of that either. Corporations are flush with cash.