[flurben]

For starters, in the U.S. system, interest rates on government debt are set by central bank policy. Investors cannot force it up or down.

In general, I'm not sure the guy they are quoting is a reliable source of information about macroeconomics.

[panick21_]

That's a was oversimplification and is as constructed not correct.

Interest rates on government debt are not set by central bank policy. Nominal rates on back reserves are set by central bank policy. But those rates are set RELATIVE to real rates.

So if real rates are low then the central bank can not magically set them higher without causing massive economic damage.

So yes, investors and the real economy very much influences interest rates.

In addition government debt interest rates are very different and are mostly determined by market forces.