Generally speaking, the interest rate of long-term government bonds mainly reflects investors' expectations of the country's long-term economic level and inflation level.

Long-term treasury bonds are generally the main course of conservative institutional investors, similar to insurance companies and pensions. The investment target of these institutions is generally 10 to 20 years, so the biggest concern is not the uncertainty of income, but inflation and long-term economic growth. Long-term national debt is the most traditional investment tool to hedge inflation risk and long-term economic risk.

Therefore, the downward trend of the target yield of national debt actually reflects investors' pessimism about long-term economic growth and low inflation expectations.

Transferred from Zhihu