: What sets long term government yields? Can one say that the market sets the rate/yield via the price that in turn is determined by supply and demand? The supply/demand is moreover a function of inflation, future expectations

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Can one say that the market sets the rate/yield via the price that in turn is determined by supply and demand?

Well, the government sets the rate when it issues bonds, but the market sets the yield by setting the price via supply/demand for those bonds (rate, price and yield are inter-related, so one of them is calculated from the other two)

The supply/demand is moreover a function of inflation, future expectations of short term rates and how the risk sentiment in the general market looks like?

Long-term yields are a function of the expectation of shorter-term yields, yes. Inflation and rates are also inter-related so you could approach it from either direction. Not sure what you mean by "risk sentiment" but I suppose that some investors that want to be compensated for taking interest rate risk will require more return (and thus lower prices/higher yields)