Aggregated Awareness

Perusing various news outlets can yield surprising results. As an example from today's Ninemsn.com:

"...The TD Securities-Melbourne Institute monthly inflation gauge showed prices grew by a further 0.4 per cent in November, the largest monthly increase since May.

This lifted the annual rate to 3.9 per cent, well beyond the top end of the central bank's two to three per cent inflation target band.

"With inflationary pressures already building, the next move remains up for interest rates," TD Securities head of Asia-Pacific research Annette Beacher said.

Ms Beacher said that while another 25-basis-point increase to a five per cent cash rate in the first three months of next year cannot be ruled out, given the central bank now has room to manoeuvre, this timing could easily slip into April or May without compromising its anti-inflation credentials..."

Source...

Once having read the above passage in red, we proceeded to take a wander over to the RBA's website, to see what that particular institution states inflation to be, and it didn't surprise us to see this:

From Rob Kirby via Financial Sense comes an excellent explanation on why a deluge of US Treasury Bond supply is met with even larger US Treasury Bond demand, and why quantitative easing (QE or Queasing) will ensure even larger US Treasury Bond demand or even lower US Treasury Bond yields.