Friday, Dec 12, 2008
First Houseprices, now US gov Bonds, Bubble alert
TheBigPicture: The Zero Yield Economy
At auction, Treasury sold $27 billion of three-month bills at a discount rate of 0.005%. This is the lowest yield since it starting auctioning the securities in 1929.
Just as astounding, the U.S. sold $30 billion of four-week T-bills, at zero percent for the first time ever (4 week treasuries have been around only since 2001).
Posted by mountain goat @ 08:02 PM (481 views) Add Comment
5 Comments
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1. mountain goat said...
If you prefer a more in your face commentary of this crazy situation That means buyers literally agreed to give the U.S. government $30 billion in FREE money, accepting ZERO return. And those buyers were falling all over themselves to get a piece of this “great” deal. Market Oracle Article
2. fjcruiser said...
Can someone explain why one would buy T-Bills as zero % yield over keeping the money under the mattress. At least with cash under the mattress it is there immediately. T-Bills you have to reedem them. Surely it is riskier isn't it ?
3. gardeniadotnet said...
Even a million dollars under the mattress makes for an uncomfortable night's sleep.
4. fjcruiser said...
dont mind about a back ache. Would rather sleep on a $1mil than some dodgy T-Bills.
5. gone-to-colombia said...
Does this tell us something about the reliability of banks?