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The article also notes that private investors have no appetite for more bonds and prices will crater as a result. Could this lead to higher yields and thus higher borrowing costs for the government? Are interest payments about to make a major jump in the federal budget?

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If you ask me, yes and yes. But I don't think they will get very high. I've seen claims of low demand for US bonds before and it turned out the exact opposite.

Right, I supposed we should consider bonds compared to where else would you put the money atm - nothing looks particularly attractive.

If they do it would be because the Fed has decided so and could decide the opposite at any point in time.

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