Second, it does that because people want bonds: in effect the government is running a savings account service by issuing them to people who want maximum security for their money, whatever the interest rate, and the government is happy to do that to support the economy.
Whatever the interest rate, eh?
And one of the buyers of second hand bonds is the Bank of England, which has bought £635 billion of government bonds since 2009.
If the government, the Treasury of the Bank of England believed that it’s all independent of the interest rate then why do they own such a large proportion of them?
The underlying point here being that you can’t look to the current market price of bonds to tell you anything useful when it’s clearly and obviously such a rigged market in bonds. Just to clarify here, perfectly happy with the rigging. Just insisting that the price isn’t telling us what some thing given the rigging.