RESULTING IN FALLING INFLATION AND COST OF DEBT U.S. inflation (annual year/year CPI change) Yield on 10-year U.S. treasuries 25% 16% 12 15 8 Average 5 Average 4 -5 0 1950 1960 1970 1980 1990 20002007 1960 1970 1980 1990 2000 June2008 Source: Bureau of Labor Statistics, Federal Reserve