High rates can make the currency more attractive. Not less. Tends to strengthen the USD. So the next conclusion is also false.

But yes, higher yields can be related to demand, but they're not simply a function of demand. They relate to things like inflation expectations, and so the short term rates set by the Fed, and the risk premium. In this case likely the higher rates are not high due to demand but rather due to inflation expectations and the Fed having raised the overnight rate.

Bid to cover can be one estimate of demand and I'm not really seeing anything particularly exciting going on here: https://en.macromicro.me/charts/30431/us-10y-bid-to-cover-ra...