The Treasury sells $14B in (reopened) five-year TIPS at -1.496%. Bid-to-cover ratio of 2.7;...

This news story has 6 comments:

Register or Login to rate comments »

bull_market_somewhere Comments (104)
 
ha...
20 Dec 2012, 01:06 PM Reply Like

youngman442002 Comments (4973)
 
That does not look to good....
20 Dec 2012, 01:12 PM Reply Like

bbro Comments (7839)
 
-1.496%.....Minus....
20 Dec 2012, 02:53 PM Reply Like

CerpherJoe Comments (20)
 
But, not to worry - from what I've been told there won't be any inflation because "broad money" is shrinking. Hmmmm.
20 Dec 2012, 05:09 PM Reply Like

bull_market_somewhere Comments (104)
 
may turn out to be true, although i doubt it. hedge funds, reits, private equity, mezz lenders, etc. have been reducing the amount of credit extend on a much larger scale than anyone else. the fed may just merely be printing to keep money supply afloat and prevent a deflationary cycle.
20 Dec 2012, 05:12 PM Reply Like

J. Sobes Comments (86)
 
"the fed may just merely be printing to keep money supply afloat and prevent a deflationary cycle" May? Look at the great depression. One of the major issues was deflation and Bernanke is educated in possibly every nuance regarding the great depression in existence. Wish I had my original source to back this claim up but that's right on the note. It's why policy never values a 0% interest rate - that would risk deflation with the lack of precision.

On another note wth does this mean? Last time I check TIPS are adjusted downwards for delation as well. Maybe I'm really tired, but does this mean that they are expecting the payment to decrease? ahhhhh...
21 Dec 2012, 12:15 AM Reply Like