Yglesias

What Do Bond Traders Think They Know

CREDIT:

We see here the past 30 years worth of interest rates on 30 year US government bonds:

bonds 1

And here’s the CBO’s projection for the volume of debt, with the “alternative fiscal scenario” being what the CBO considers to be the most realistic projection based on current policy:

cboproject 1

It’d be interesting to know what the people buying these bonds think is going to happen. Not inflation, based on these yields.