This sketch fails to comment that the yield of treasuries is close to what it was pre-crash at 4%, and has not "tanked" compared to the bottom of treasury yields that corresponded to the bottom of the stock market (-50%), it's climbed. Further, it's important to clarify the 11% drop in YIELD is still a positive yield (in deflationary times!), compared to the 50% drop in VALUE and virtual wipeout of dividends that occurred with the stock market in the last year.
I think the tone this piece sets fails to put treasury bills in the big picture of overall investment, and that a net year over year return is something that's extremely lauded for any stock broker this year.
I think it's amazing that with a record sale volume, those 10 year treasury yields are still under what they were pre-crash. That says a great deal about the continuing demand volume for secure investments. That says the government is doing a good job of matching supply and demand now.
Now, getting into the details of who is buying those 10 years (is the government buying from itself? foreign investors? US institutions?), or comparing yields to other very secure institution 10 year yields, that would be an informative sketch.
Does the yield or the supply/demand balance in the bond market have any correlation to inflation/deflation?