Wednesday, December 10, 2008
0% on 4 week T-bills, Negative yield on the 3-month
he Treasury sold $30 billion of four-week bills at zero percent for the first time since it began selling the securities in 2001 amid persistent demand for the safety of U.S. debt during the worst financial crisis since the Great Depression.Negative rates! You are paying the US government to take your money. What a day.The bills were sold at a high discount rate of zero percent, the Treasury Department said today in Washington. The government received bids for the bills totaling more than four times the amount sold.
...
Yields on government securities have plummeted this year to record lows as investors have gravitated toward their safety as stocks and emerging-market assets plunged. Rates on three-month bills, viewed as a haven in times of turmoil, traded at a negative rate of 0.01 percent today. The Treasury sold $27 billion in three-month bills yesterday at a rate of 0.005 percent, the lowest rate since it starting auctioning the securities in 1929.
Labels: Crisis2008
2 Comments:
It is quite interesting to see and learn that how one should react to such scenario,it is a virtual situation neverthless it is being played out to learn from it,and so it may also involve some emotion,after machines are not concerned but humans are.
What is your take deepak on this whole really,operator driven rally it seems,or how one may justify this one coming out of nowhere.
warm regards,
Aman.
THis is just a 8% drawdown. On fundamental strategies it will likely go to 20 or 25%; and I wouldn't worry too much before that.
There will always be new shorts to take...rallies are a given, we are likely to move up another 5-10% also, but you never know when it will turn again.
Disclaimer: The author of this page is not a registered financial advisor, and you should not construe anything written here to be investment advise. You should consult a qualified broker or other financial advisor prior to making any actual investment or trading decisions. All information is a point of view, and is for educational and informational use only. No representation is being made that any investment made on the basis of data or information on this blog will result in profits. Te author accepts no liability for any interpretation of articles or comments on this blog being used for actual investments. In short: Apply your own thoughts before investing; I could be wrong. I do not accept responsibility for any losses incurred by interpretation of content in this blog. Further all content on this blog is free to view; no reader is expected to pay any amount as fee or any other consideration to me (the author) for reading my views.