That’s A Negative, Ghost Rider…
October 26, 2010
“The Treasury sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time at a U.S. debt auction as investors bet the Federal Reserve will be successful in sparking inflation.”
∙ Treasury Draws Negative Yield for First Time During TIPS Sale [Bloomberg]
Comments from Plugged-In Readers
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…the pattern is full.
PS: Goose gets killed.
Bogey is splash.
No government that’s wanted inflation has ever been disappointed. Governments that want to reduce inflation, on the other hand, have a tough task.
Wouldn’t be surprised if the BLS is getting the next round of hedonic adjustments ready for the move upward in the CPI.
It’s a funny saying, but just not true. Japan would kill for some inflation, and have been trying since the early 90s to achieve it. I think they’re disappointed.
In case anyone was still under the (mistaken) impression that creativity and originality mattered in Hollywood, director Tony Scott is looking to return to the film that launched his career, by developing a sequel to “Top Gun”:
Somehow I don’t think a pilot at a joystick thousands of miles away from the battle scene is going to command quite the same dramatic tension as one in the cockpit of a plane that can be blown out of the sky with a single missile strike.
As far as the bond sale goes, this is almost a non-event. The Fed’s trying to get some actual inflation now because it’s currently so far below target, but will wind up settling for staving off deflation. There’s still too many inflation hawks on the FOMC for actual inflation above the target level, much less inflation that has to have steps taken to actually reduce it.
Inflation….I’m sure the bond markets will love that. Not.
Methinks Helicopter Ben is way beyond his pay grade.
“Japan would kill for some inflation, and have been trying since the early 90s to achieve it.”
Japan has tried everything to create inflation … well … everything except the one thing that would actually work. Print money and hand it out to the people.
Of course, if they did that it would benefit the people and harm the bond holders. Since the majority of the elite are bond holders and the elite decides what the government does you can see why it’s been “impossible” for Japan to create inflation.
Retirees on fixed incomes prefer deflation, since it makes them richer. Japan has lots of retirees and the political system is tilted even more in their favor than it is here.