If we had to forecast (and we do), we believe a range of 3 to 4½ percent for 10-year nominal Treasuries will prevail during most of our secular timeframe,
If he continues to believe that a flat curve is indicative of economic weakness, the hand-off may be one in which we stop at 4.5 percent.
So, the lower inflation goes and the more and more investors believe that inflation will stay low, the better it is for the bond market.
I firmly believe this is going to catch on.
If you do believe 4% is the top,
Damn inflation, full speed ahead,' Greenspan has said in both action and word. I think an investor should believe him and invest accordingly.