That is a sign if contangoed inventories. The six month to five years is flat, sporting an eight bais point bulge. That means that someone was short goods in the intermediate value added, they took out debt to meet deliveries, and will be showing a bit of a loss from that. It is a mispricing, but includes a currency risk backed by the federal guv. That currency risk accumulates, never gets priced when it is the first thing we need to price. The currency loss portion,small, but it not dissipated builds up in government obligations, bailout debt, pensions and inflation adjusted contracts; much of government is self insured against currency risk..
It is not all government currency risk, only 19%, I would figure, bu it includes huge chunk of the debt now rolling over. It has been 45 years since the federal government farted, and it won'[t be smelling good when it comes.
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