The Zero Yield Economy
We mentioned this yesterday as it happened, but Treasuries traded down to previously unseen yields. The 3 month T-bill went negative yield for the first time ever.
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).