Academic

CHANGE: Treasury Draws Negative Yield for First Time During TIPS Sale. ?The Treasury sold $10 bill?

By Glenn Reynolds

CHANGE: Treasury Draws Negative Yield for First Time During TIPS Sale. “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. . . . The dollar dropped to a 15-year low versus the yen after a pledge by the Group of 20 nations Oct. 23 to avoid ?competitive devaluation? failed to dispel speculation the Fed will debase the greenback by announcing more bond purchases in a strategy called quantitative easing.” Oh, goody.

Full post as published by Instapundit.com on October 26, 2010 (boomark / email).