A paid up subscriber and friend of the blog passed along to me a note that the Treasury had called the 13 1/4 May 2014 bond. Obviously, with that coupon the taxpayers will benefit greatly from the call and subsequent refinancing.
I post this because I recall that bond as the last bond to trade at 14 percent. It was issued as a 30 year bond in May 1984. In those days the treasury issued callable long bonds but the call protection was 25 years. Anyway, on the settlement day May 15 1984 the owners threw up all over their shoes and the futures market was down limit. The new bond traded to 14 percent in the cash market. The rest is history as its successor sees nothing but buyers today in the 2.80s.