Treasuries…yield…and demand.

When there is a socioeconomic environment in place which constitutes relatively high levels of market demand for 10-year Treasury notes, investor bids for these notes would most likely come in at or above a bond’s face value. The higher offer prices for the bonds will drive down bond yields, because investors are willing to accept the lower coupon rate they receive for the bonds in exchange for the de-facto loans they are making to the United States government by way of their purchase of 10-year Treasuries.