A year and a half ago (The Bond Buyer, May 24, 1993), we objected to the Clinton Administration's proposal to shorten the maturity of U.S. Treasury debt. The Treasury Department plunged forward with that initiative in the summer of 1993.

Since then, long-term U.S. dollar-denominated bond investors have suffered enormous losses in the bond market sell-off that commenced in October 1993. This bond bear market has been widely attributed to inflation fears or Fed policy or dollar weakness. That roster of villains must also include the Treasury's policy shift to shorter maturities.

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