The yield is bounded from below by the treasury yield, which is just a little lower - and with the treasury you have really big problems if they default! But realistically the US will inflate its currency rather than default, so the yield is really just reflecting expected future inflation. It’s not as great a deal as it seems. Bonds are probably the most fairly priced assets in the world.

So much low-risk debt has been issued by the likes of Google, Amazon, etc. that it’s hard for other debt issuers to compete.

US 10y bonds are at 4.871, which is lower but fits your description even better.

That being said, inflation is at 3.7% YoY and it's the real rate that maters, not the nominal one.

I disagree. I think Google Search is in huge trouble. Most of their profits come from it.

Google can go under and literally nothing will flinch. I don't think it will cause any trouble on my side, let alone bigger on then loss of capital.

The treasury is having daily rates of 4.56% at 2 year bond and 4.88% at 10 years rate.

Yes, Google has a very small risk but still it is a non zero risk that google can bankrupt whereas US govt can physically not bankrupt itself given that it can print the money (there could only be some gridlock within raising the ceiling though but that's true)

Also I would argue that Google itself has changed with trillions of dollars spent into AI/Datacenters, it simply can't pivot as well. There is a reason as to why Google is having such high level of interest rate

Google isn't stupid and wants to give such high level of interests if not for the amount of risk involved. I dont believe that there's free lunch but also that perhaps this can be a good deal to some and this is gonna push people even more away from the more riskier neoclouds funding and cause their debts to rise in interests rate even more.