Rates on three-month US Treasury Bills turned negative last week for first time since debt selling began in 1929
The world's biggest bond fund manager, Pimco's Bill Gross, believes the next asset bubble set to burst could be US Treasuries. "Treasuries have some bubble characteristics, certainly the Treasury bill does," Gross says. "A Treasury bill at 0% is overvalued. Who could argue with that in terms of the return relative to the risk? There is no return." The US Treasury sold $30bn of four-week bills on 9 December through an auction at 0%, while three-month bill rates turned negative for the first time since the US began selling the debt in 1929. Gross expects the Federal Reserve to cut its t...
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