Hypothesis (for which I have zero supporting data): the long term trend towards lower interest rates is the result of the disappearance of a risk premium for la

Hypothesis (for which I have zero supporting data): the long term trend towards lower interest rates is the result of the disappearance of a risk premium for lack of liquidity. In other words, you used to have to worry about both losing your money in a long-term way (e.g. the government you loaned it to defaulted, the business you loaned it to went bust) and not having access at the moment you need it (the government/business is solvent, but it's not come due yet, and nobody wants to buy your bond). As financial markets have gotten bigger and more sophisticated, the risk of the latter has diminished. So, eventually the dropping of interest rates will plateau at a non-zero value, reflecting only the risk of outright default, since the risk of nobody wanting to buy just now becomes vanishingly small as the market gets broader and broader (perhaps as broad as the entire planet's saving population). Again, zero supporting data, just a hypothesis.