Dumbfounded

Yup.

According to a story from Reuters (linked below) Federal Reserve officials are confounded by the recent steepness in the yield curve for Treasuries. Regardless of their hypothetical ponderings, the wide disparity between the rates for near maturities and those on the long end is caused by investor preference for short-term money.

Unless someone is totally ignorant of economic principles and the consequences of printing money on a whim, then no mystery exists as to why investment dollars are turning tail from the 10, 15, and 30 year Treasury bonds. No rational person fearing the distinct possibility of hyperinflation would dare lock money in for the long term where devaluation destroys the principle and coupon.