First of all, we should understand that the interest rate, yield, yield and price of national debt are different concepts.
First of all, the interest rate of national debt is determined at the time of issuance and is generally unchanged. For example, when it was issued, it was 2%, and the interest rate of national debt was 2%. In this connection, when the national debt with a face value of 100 USD is redeemed at maturity, the yield of the national debt is 2/ 100 = 2%. At this time, it seems that interest rate and yield are equal.
However, if the bank interest rate drops, if the bank interest rate is only 1%, if I save money, I will lose a lot, then people will take out their money to buy government bonds, or for other reasons, then more people will buy them, thus pushing up the price of government bonds. For example, if it is 10 1 and the return remains unchanged, then the yield of national debt at this time is 2/1kloc-0/=1.98%, so the yield of national debt and interest rate are not equal. On the other hand, if the bank's interest rate is high, people will sell the national debt and get the interest rate income from the bank. At this time, the price of national debt becomes lower and the yield of national debt becomes higher.
As can be seen from the above, the yield of national debt is negatively correlated with the price of national debt, that is, the higher the price, the lower the yield. This is very simple, because the income as a molecule remains the same, the denominator of the price becomes larger and the yield decreases. On the contrary, if the yield is high, it means that the price of national debt is low, which means that the financial assets of the United States have shrunk. Therefore, in order to maintain the balance of financial assets and liabilities on the books, the United States desperately depressed the rate of return. The yield of government bonds is the benchmark index to evaluate financial assets. Buying government bonds with Japanese QE money will push up the price of government bonds and increase wealth. Judging from the index, the yield will fall. China put all his eggs in one basket to sell US Treasury bonds, which is to depress US Treasury bonds while recovering funds, so that its wealth will shrink or partially evaporate, that is to say, the yield will increase.
Then why does the behavior of yield hit the stock market and bond market? Because the upward trend means that the price of national debt is lower, the money goes to the bank or flows out, and the liquidity of the US dollar is insufficient. Who still has money to play the stock market and bond market? The stock market is an important source of financing, which leads to insufficient liquidity and difficult overall economic recovery.
Another common sense is that the yield of government bonds is positively related to the bank interest rate, that is, if it rises, it will rise, and if it falls, it will fall. There is a simple reason. If the income from buying government bonds is higher, people will take money out of the bank to buy government bonds because of the yield. At this time, banks have to raise interest rates. So it is basically the same, otherwise another market will no longer exist.
Of course, everything is not that simple. To understand the national debt of the United States, we need to understand the global dollar cycle. That's why people say petrodollars are the lifeblood of America. So whether the United States can do it depends on this.