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US bond moves are a bullish signal

Published: July 1 2009 03:00 | Last updated: July 1 2009 03:00

From Mr Paul L. Kasriel.

Sir, Martin Feldstein (“The Fed must reassure markets on inflation”, June 29) asserts that “higher long-term [US Treasury] interest rates reflect investors’ concern about future inflation, future fiscal deficits and the future willingness of foreign investors to purchase US bonds”. Would not the yields on privately issued US bonds also be affected by these same factors if Prof Feldstein’s hypothesis were correct?

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