With Treasury securities at all time lows you get the feeling fundamentals is not the only thing driving the rally in U.S. government bonds. After all, the Fed has been lowering interest rates and showering the financial sector with money. So, I wanted to highlight a comment that I find fitting.
“The cash has to go somewhere and the most likely vehicle is going to be some sort of Treasury,” says Bill Knapp, investment strategist for MainStay Investments, the retail arm of New York Life Investments.
Now, Bill goes on to say some other things but his comment here crystallizes in a sentence why the rise in Treasurys is a problem. Well done.
Source
Will Treasurys Stop Rallying? – Market Beat