13-WEEK TREASURY BILL Yield Drops to Lowest Level This Year

[Sapiens]

http://www.bloomberg.com/apps/news?p...d=a9ttF62ugGVU

By Cordell Eddings

Nov. 19 (Bloomberg) -- Treasury two-year note yields and three-month bill rates dropped to the lowest since financial markets froze last year on concern that the rally in higher- yielding assets has outpaced the prospects for economic growth.

...

Russian roulette... :rolleyes:

Know this, a consolidated market is the most hated market condition on Wall Street.

[grapejelly]

Re: 13-WEEK TREASURY BILL Yield Drops to Lowest Level This Year

it is a freakin bubble in govt debt.

Gold will plummet, the dollar will rise, CBs will intervene to try to crush it, til the USD index is 82 or so...then it will crash with the bond market

[Mega]

Re: 13-WEEK TREASURY BILL Yield Drops to Lowest Level This Year

I only understand English.................
Mike

[santafe2]

Re: 13-WEEK TREASURY BILL Yield Drops to Lowest Level This Year

And long term debt is silly cheap. We're beginning to leverage debt for land and water rights at less than 5% interest. Why would anyone bet the US$ against a hard asset?

[Sapiens]

Re: 13-WEEK TREASURY BILL Yield Drops to Lowest Level This Year

U.S. 3-Month Bills Turn Negative; Gross Sees ‘Systemic Risk’

Nov. 20 (Bloomberg) -- Treasury three-month bill rates turned negative yesterday for the first time since last year’s credit freeze, on concern prices of everything from stocks to commodities are too high given the outlook for economic growth.

The global average government bond yield dropped to 2.20 percent as of yesterday from 2.50 percent in August, according to the Merrill Lynch Global Sovereign Broad Market Plus Index. Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said the “systemic risk” of new asset bubbles is rising as the Federal Reserve keeps interest rates at record lows.

“The Federal Reserve’s low-interest-rate policy will continue for a long time, maybe two years,” said Hiromasa Nakamura, a senior investor at Mizuho Asset Management Co. in Tokyo, which oversees the equivalent of $21.4 billion and is part of Japan’s second-largest bank. “There will be a double- dip recession. Treasury yields will decline.”

The three-month bill yield was at 0.005 percent as of 8:25 a.m. in London, according to generic data compiled by Bloomberg.

Rates turned negative yesterday on some bills maturing in January, according to Sarah Sobeck, a Treasury trader at Jefferies & Co. one of 18 primary dealers that trade directly with the Fed.

Bill rates were negative last December for the first time since the government began selling the securities in 1929 as investors sought to preserve their principal following the collapse of Lehman Brothers Holdings Inc.

...

No yacht may be large enough to survive this tsunami unscathed...