Low rates reflect low inflation says Santomero

The president of the Philadelphia Federal Reserve Bank said on Wednesday 31 August low long-term U.S. yield rates in the Treasuries market that have received so much attention in recent months are partly a reflection of low inflation expectations.

"There have been a number of theories," said Anthony Santomero about the phenomenon Fed Chairman Alan Greenspan called a "conundrum" early this year.

"One theory that I find has credence is that markets are convinced that as this recovery takes place,

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