Nio Inc (NIO)

[OrizG]

There is no rise in "yields".

What we have is a bond market that sells products with very attractive returns.

Institutions are buying them because they are pricing in the fact that a strong recovery is expected and when that happens we have inflation.
At that point they expect the FED to raise the discount interest.
Those bonds need to be that high to protect investors against inflation.

Someone is speculating that we're going to have that situation.
But Powell said no.

Now we have institutions dumping stocks because with a higher yield you make stocks less interesting. (Because stocks are capital intensive and money gets more expensive to borrow with a higher yield).

So, there a speculation that the discount interest will be raised in the future to counter balance inflation.

The bond craze is the result of that speculation. No rise in yields for now.