Isn't it a greater risk to buy bonds when the government is in debt?
That depends on the nation, which is issuing the bonds. Some of the countries issue bonds which are having a very low risk of default, such as the United States. But these bonds usually have very low interest payments, like 3% per year. On the other hand, there are bonds issued by "risky" nations, which are having higher interest rates.
Its not the right time to increse rate and shouldn't be until we see explosiv inflation. The jobs we have witnessed are easily evaporated when we pass over this construction season and increase interest rate. If the economy is grown fully and judgd by fed being so, demands for bonds will be stronger and even rated lower irrespective of higher interst rate but fed should try to narrow down trading deficit as much as it can.