Investors bought three-month US treasuries for a zero yield for the first time yesterday, bringing the US closer to global peers offering bonds with negative yields.
The safe haven asset has been in high demand throughout the summer, despite fears of an interest rate hike, amid volatile market swings and a day of market falls in August dubbed ‘Black Monday'. Yesterday saw the sale of zero-yielding three-month treasury bills totalling $21bn, the Financial Times reports, bringing the US closer into line with its developed market peers that have auctioned debt with negative yields. How to make sense of the negative bond yield theory In Febuary, German five-year government debt sold at a negative yield for the first time in history, while Finland, F...
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