Some economists are predicting a double dip recession, which would mean a rate hike might not come until the end of this year, possibly not until 2011. Investors usually turn to equities when they are worried about inflation eating up bond returns, but that's not yet happening. Instead, the inflation-protected TIPS auction drew a record level of interest; since investors are still loathe to take on any kind of risk while the macroeconomic scene plays itself out.

    It's valid to ask whether America's $82 billion of borrowing this week is a condition to be pleased with. Though this week's auction pales in comparison to the $123 billion record week of Treasury auctions held in October 2009, just two years ago, the country didn't come close to borrowing that much in an entire month.

    But right now the U.S. government is still the most desirable and valuable game in town for pension plans, insurance companies, banks, and even foreign governments. Until securitizations come back and a strong recovery takes hold of this country, expect months of strong auctions ahead, with investors scooping up billions more dollars of our national debt.