Wednesday, September 17, 2008
Flight to Safety
A truly amazing day. Yields for 1 month treasury bills dropped to 0.07% and for 3 month bills the yields fell even farther to 0.03%. Even compared to last week this is an amazing drop and it is even more stark compared to last year, let alone before all of the problems in financial markets. With rates this low the Treasury Department is simply agreeing to give you your money back, with virtually no interest. A bit better than putting the money under the bed, but not much.