This is an important discussion, but one in which few investors participate. Today especially, you can’t do well knowing only about “interest rates.” You have to know about nominal interest rates (the market rates) and real interest rates (nominal rates minus inflation). This post does a good job of showing the difference. It explains that today nominal rates seem very high historically, but real interest rates aren’t. It’s something you need to know when considering whether interest rates are likely to rise soon and by how much.
But if you look at these measures on a real basis, they are actually both right in line with their long-term averages because inflation is so low at the moment. On a nominal basis things look scary. On a real basis, not so much. So which value matters more? That depends on whether or not inflation and/or yields pick up in the future and the magnitude of those moves in relation to expectations. As usual, things are not always as easy as they appear on the surface.