That is so simple to answer, I can’t believe you asked.
The obvious answer is the gov’t is flooding the monetary system with electronic money. The bank can borrow from FED at the stipulated rate, so money supply is never short. How do you think the gov’t can spend $1,000,000,000,000 every year more than they take it in with taxes?
Some people do not want the risk of buying stocks and real-estate..may be too old or have no appetite for risk. Those people get 0.1% interest from bank savings accounts and slightly more from CD’s. So the gov’t has no problem selling bonds paying 2-3%.
People who can take risks are buying stocks and real-estate. Stocks are now more over-valued than just before the 1929 market crash.
The obvious answer is the gov’t is flooding the monetary system with electronic money.
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No they aren’t. The yield curve is flat. The market rate for money at the short end would be much lower than the funds rate. That’s not flooding.