26
November
Fear pushes U.S. govt. debt interest rates negative
26 November 2009 The Financial Times
Yields on short-term US government debt have fallen into negative territory as banks and investors park their cash in havens before the year’s end. Strong demand for US Treasury bills with durations of one year or less suggests that fear still pervades the financial system as investors show their willingness to forgo interest income or even take a small loss to own securities considered safe. In the bond market, fresh demand for short-term government debt also extends to the two-year note, reflecting the push by institutional investors to clean up year-end balance sheets.
http://www.ft.com/cms/s/0/38a7e9b0-d92b-11de-b2d5-00144feabdc0.html
