Hold to maturity investors change when inflation shifts so much.

Someone may have bought 10 year 2% notes intending to hold to maturity because they thought inflation would stay at 1% and they just wanted to park cash. But with inflation at 3-5% they now need to dump and buy something else.

People change their tactics to achieve their strategy.

The rate of return is no longer acceptable

2 years ago the 10-year Treasury was yielding 1.5%. Inflation would have to be below 1.5% for the following 10 years for the bondholder to make back more than inflation.

Actually people who bought Treasuries in 2021 are almost underwater on it already, just in inflation these last two years. Cumulative price increases for 2021 + 2022 was 14.5%, while 10 years of 1.5% interest gives you 16%. Inflation would have to be basically zero for the next 8 years for them to break even.

Yeah I read your comment, but what is 'acceptable' level of return changes with the climate. The whole point of investing is to fulfil your financial life goals, not make X%/yr arbitrarily.