February 19, 2009

Treasury rates below zero

This happened back in December, does this mean that the market will start to go back up on March 10?

Demand for safety sends 3-month Treasury rates below zero
Tue Dec 9, 2008 5:14pm EST
By Ellen Freilich

NEW YORK (Reuters) - Three-month U.S. Treasury rates dipped below zero on Tuesday amid intense demand for safe U.S. government debt and bets that the Federal Reserve will keep cutting interest rates to avert a deep, sustained recession.

U.S. Treasuries prices, which move inversely to yields, rose across the board and allowed the Treasury to sell $30 billion of four-week bills at an unprecedented high rate of 0.000 percent.

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