The article reported: I've bolded the above statement because what it means is that the 5-year Treasury note price is at an historic, all time high. In the event of double digit inflation per annum on average (like we experienced in the late 1970s) this five year bond could lose nearly 40% of its value. As far as I'm concerned, the words "guaranteed by the Government" should raise red flags, not soothe investor nerves.