Ah the wisdom of the market.
The whole theoretical basis for why markets work is that if each person is advancing their own interest in a competetive environment that is the best way to value assets. Any individual transaction is not necessarily indicative of anything, but the valuing over thousands of transactions is useful information, taken together.
That's why this is really bad news. Basically, the market is saying that Fed Chairman Benarke will not be able to resist pressures to cut interest rates. And that means it's pretty much guaranteed that we're going to have inflation.
When an inflation guaranteed security is trading at negative value, that means that so many people in the market are so sure that inflation is coming and will eat such a significant portion of investment income that they will over pay just to be sure their money maintains value relative to inflation.
In other words, we're screwed.
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