How long do you have to watch a business channel before the topic of "deflation vs. inflation" is discussed?

To tell the truth, not long.

Speaking of To Tell the Truth (America's 12th most popular game show), what are bond yields telling us regarding this very important debate?

Have a look at the 3-pak reflecting yields from short to long term.

So whom do you believe? To tell the truth, I would lean towards the long end to give us the best picture of what "lies" in our future!

Click for a larger image

The macro theme: All three have fallen a great deal since April.

The micro theme:

• Long-end (30-year) — A series of higher lows has taken place, while breaking its falling resistance line and a flag pattern is in play.
  
  
• Mid-range (10-year) — We see an incomplete flag pattern.
  
  
• Short-end ( 5-year) — Rates continue to fall, approaching the final crisis lows of 2008.

Historically the longbond is very sensitive to inflation. If the long bond yield continues to fall, the bond market believes a slowing economy is in the cards.