WHAT INFLATION? (Suggested by Jim Hamlen)

US 30-year bond sale gets strong demand (Business Times, 2/11/06)

The Treasury said it sold 30-year bonds at a high yield of 4.53 per cent, the lowest ever for a 30-year bond auction. The previous low was 5.52 per cent in the last 30-year bond auction in August 2001.

In other words, the market is less worried about long-term inflation now than it was at any time from 1977, when the long bond was introduced, through August 2001, the last time it was sold.

Posted by David Cohen at February 11, 2006 10:08 AM