So basically there's this huge demand for debt in the form of the AI infrastructure buildout, and they're willing to pay the interest rates because the ROIC is good at current rates.
And this is crowding out demand for treasuries, which is causing Bessent to have to step in just to keep rates where they are.
And the Fed wont step in to help because inflation is too high and unemployment isn't high, so they wont ease monetary conditions.
So treasury rates will probably continue to drift upward unless Bessent has some sneaky way to unlock many many more billions of dollars of demand for UST.
Or until Energy prices come down, which is the main input on inflation right now.
This is a semi-stable system as long as the AI infra buildout isn't a bubble...