From Japan to the US to Germany, we are currently seeing longer term bond yields falling at an alarming rate.
I tune into a fair bit of economic commentary, and can often come to some sort of understanding of the factors that commentators say are at play in the current situation. But one I struggle with is the idea that weak private investment is a factor in declining yields.
Can somebody please explain why this is the case? Is the idea that weak private investment leads to weaker GDP growth, which leads to weaker inflation, which leads to higher bond prices? Or is there something else at play here?