South Korea's National Pension Service Says Time to Sell US Treasuries as Sees Inflation on Horizon

South Korea's largest investor, the South Korea National Pension Service said it's time to sell US treasuries as it believes the stimulus plan being developed by Obama and the Congress will lead to higher inflation and higher treasury yields. It's strange that as we struggle with deflation there is now talk of inflation concerns on the horizon.

From Bloomberg:

“It’s time to sell U.S. Treasuries,” said Kim, who took over as head of investments at the start of the year. “The stimulus plan may cause inflation. The U.S. will raise the benchmark interest rate.”

And from the same article:

"The Fed will increase its target rate for overnight loans between banks to 0.75 percent by March 31, 2010, the poll shows. The U.S. central bank last month cut the target to a range of zero percent to 0.25 percent."