The yield on the 10 Year Treasury has collapsed, down 37.9% since November 7.
Please explain.
The rates are set at auction, and the more demand there is for the bonds, the lower the rate has to be to sell them.
Since ideally the same pool of cash is available for equities and bonds, this generally signals a lack of confidence in the economy and the markets, as investments are generally a better way of making money on ones cash than buying bonds.
But we live in a world awash with US dollars, and to put that money into equities only inflates their cost, and there is only so much business that the economy can sustain, so the cash makes its way to bonds and bills and drives their yields further into the ground.
When the Fed says they are raising rates, that means they are increasing the supply of bonds so that everyone can get their share and some be left over, driving the yields to the targeted percentage.