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.
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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.
0% on 4 week T-bills, Negative yield on the 3-month
From Bloomberg:
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2 comments:
Deepak have you stopped out from your position in DLF or are you still in,if i remember you initiated it at around 250 and now it is back to the same level in around a 2 month's time.Are you initiating fresh shorts or your are stopping out.
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.
Aman: No, the DLF stop is much wider...the HDIL stop was only in place because it was so profitable in the first place. DLF can go up even more, even to 300+ and I won't stop out.
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.
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