Literally, money is pouring into debt as people wishing to deposit funds seek their last chance to fix good rates and corporations take the opportunity to secure money while it is available.
First, whoever says debt is unattractive is wrong.
Second, there is no hint here of unsustainability, so why is that question raised of government when its offerings are of higher grade than those being snapped up in the market?
Third, why are politicians so frightened of debt when that is so obviously what markets want?
I have no answers to those questions: the politics of anti-debt sentiment make no sense.
US corporate bonds (decent, 10 year) pay around 4.9%. Inflation is 3.4%. So, the real, inflation adjusted, yield is 1.5%. The prospective real yield is higher, as inflation is expected to fall further.
Spud has been telling us for years that everyone should buy bonds which have negative real returns.
Political economist shocked that prices matter. Film at 11.