Its clear that US bonds are over priced. 30yrs bonds are 2.67%....are you kidding me! Even with inflation at ~2% or less you'd have to be a fool or an economist to believe that inflation will stay that low over the next 3 decades. Heck, this is why the treasury invented TIPS in the first place.

Whats no so clear the choices that investors make after they glance and then pass on US debt.... easy, the go to something higher yielding. But with all the major central banks keeping rates low, people are flooding to emerging markets like Brazil where the bonds range between 8-10%. Even their short term debt is VERY attractive....although the unit price is 250k (which means only high players and banks can afford to buy, but that's another story)

Brazil has so much foreign capital coming in (also known as "hot money") that they've placed a 6% tax on bond purchases.