Investors know the future will bring either inflation or deflation, but they can't decide which. So they're erring on the side of a worst case scenario, keeping the credit markets in a stranglehold and Treasury notes extremely popular.Despite a moderate rise in the stock market Friday, the yield on the two-year Treasury note hit another record low, falling to about 0.76 percent for the first time since the note has been issued.
Adding fuel to the argument that the economy is headed for deflation, the Labor Department said its Producer Price Index, which tracks costs of goods before they reach consumers, fell 2.2 percent last month -- more than anticipated -- as gasoline and other energy prices retreated.
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