The rally in U.S. Treasuries that pushed yields on T bills below 0% this week is adding to concerns that the US$5.3 T market for government debt is a bubble waiting for a pin.
Investors seeking safety from losses in equity and credit markets charged the Treasury 0% interest when the government sold US$30 billion of four-week bills on Dec. 9, the same day three-month T bill rates turned negative for the first time since the US began selling the debt in 1929. Yields on two- 10- and 30-year securities also touched record lows this month.
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