Why are people lending money to the Government in 10-year T-bonds at 4.8 % ? When they can make >5% in 1-year CD’s.The market currently “thinks” that rates are flat or coming down.
Possible theories :
1. Maybe these highly educated folks believe what the market is telling them.
2. Maybe they have high incomes (or other assets) relative to the debt and are willing to take on the added risk.
3. Maybe they are just taking whatever the loan broker is selling them.
