All this suggests that investors who are selling Treasuries in anticipation that the Fed will ease out of the market might be disappointed. If inflation meanders back and forth around the 1% level, Mr. Bernanke may guide the Committee towards achieving not only an unemployment rate but also a higher inflation target.

It's reasonable, of course, for Mr. Bernanke to try to prepare markets for the inevitable and necessary wind down of QE. But if he has to wave a white flag three months from now and say, "Sorry, we miscalculated," the trust of markets and dampened volatility that has driven markets over the past two or three years could probably never be fully regained.

Treasuries appear to be consolidating after the recent selloff but sentiment remains fragile,” said Nicholas Stamenkovic, a fixed-income strategist at RIA Capital Markets Ltd. in Edinburgh. “Today’s five-year auction will provide a good gauge of investor demand.