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Treasury Tea Leaves Hint of Inflation Ahead

Treasury Tea Leaves Hint of Inflation Ahead

By: Dan Weil The yield premium of Treasury bonds over Treasury inflation-protected securities (TIPS) has reached a 16-month high, signaling inflation ahead. The yield premium for 10-year Treasuries over 10-year TIPS closed above 2.25 percentage points four times last week, the longest streak since August 2008, Bloomberg reports. That spread indicates that 10-year Treasury yields, [...]

December 24 2009 | Posted in Financial, Latest Stuff | Read More »