You are really a troll! http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2010/February+2010+Gross+Ring+of+Fire.htm
Supply/demand don't move T-Bond prices anymore. The biggest buyer is the Fed, and they will continue to do so.
the fed seems to think if it can just manipulate prices to some desired level that everything will be fine. unemployment will come down, houses go up. etc. Unfortunately nothing has happened except risk assets becoming massively overpriced.
However, if these assets were priced lower, the economy will be even worse. Many people wealth (savings) depends on their stock holdings.