Originally Posted by Almighty Colin

The US doesn't control the price of treasuries though. Treasuries are sold in auction. The buyers of treasuries determine the price. As far as the supply side, all other things being equal when the government borrows money by selling bonds that increases the supply of bonds, decreases their price and therefore increases the associated interest rates.

Also, I don't know what you meant by the statement that "Lower interest rates lower the value of bonds". The price of a bond increases when interest rates drop.

The fed keeps increasing the price of credit by raising rates. The higher employment you mention is likely to lead to more rate hikes. Only some other negative economic signs wil keep them from raising rates. There are some so we will see.

*IF* the fed keeps hiking rates, bond yields will likely follow.

But a bubble is a bubble is a bubble. Low rates just further inflate speculation and make the pain all the greater in the end.