Why are Treasury Yields Still So Low?

[Beet]

With the rise in the economy and the stock market, you should have seen increased Treasury yields due to increasing risk appetite. This is what happened in the spring of 2009 and again in the winter of 2010-11, to a lesser extent. But in August 2011, the 10-year yield plunged below 2 percent, even lower than December 2008, and has not budged since then.

http://www.marketwatch.com/investing/bond/10_year

To some extent the 10 year is now behaving like shorter dated maturities which have continually shown a falling trend over the past three years. But still it must be asked: Why has this correlation broken down?

Update: For reference, here is the FINRA - BLP Active High Yield US Corporate Bond Index.

http://www.bloomberg.com/quote/NBBHPR:IND/chart

Update x2: And it's not just Treasury yields. Look at the FINRA - BLP Active Investment Grade US Corporate Bonds.

http://www.bloomberg.com/quote/NBBITR:IND/chart

Holy sh**tballs. No wonder companies like Pepsi are borrowing at their lowest rates ever. There is a lot of money out there but it is mostly going into safe assets. Hmmm.

[opebo]

Fed.

[Torie]

A perception that there are not a lot of attractive investments out there, balancing expected risk and reward, so demand for credit to make them is down. 

[opebo]

A perception that there are not a lot of attractive investments out there, balancing expected risk and reward, so demand for credit to make them is down. 

In other words, the State has neglected to create Demand.