What the Treasury's $62B Debt Sale Says About the Markets

The transcript discusses investor sentiment and demand for Treasury notes, highlighting a lack of fear regarding inflation. It raises concerns about market complacency and credit risk, especially in longer-term investments. Potential red flags and inflation are noted, with the possibility of the Fed raising interest rates. The bond market's expectations are explored, suggesting a slower path for Fed rate hikes, with potential muted reactions from investors.

What does the speaker mean by 'sneaky inflation' and its potential effects?

In what way could the bond markets react if they are caught flat-footed?