Reminder

Tomorrow, Friday the 30th of July, is the final day of the governments bond auctions. This week saw a record sale of treasuries auctioned to investors. Usually this steep increase in the supply of bonds would raise the interest rates. This would be bad because it stifles investment and borrowing. Also, higher interest rates signal the threat of impending inflation.

The Bernanke Files will do a full survey of this weeks auctions after the markets close tomorrow so that readers get a better understanding of what is happening in the credit markets right now.