Oct 25 (Reuters) - The U.S. Treasury Department on Monday sold securities that fetched a negative yield for the first time, implying investors are willing to pay the government to own its debt.Read the rest here.
This is a milestone in the current rock-bottom interest rate environment, as the Federal Reserve is widely expected next week to announce it will buy more Treasuries to jump-start a sluggish economy.
Typically, investors buy a new Treasury bond at "par" or $100. At Monday's $10 billion auction of five-year Treasury Inflation-Protected Securities (TIPS), they paid more than $105 and accepted a bond that yields nothing even after factoring in a 0.50 percent semi-annual interest payment.
is the blog of an Orthodox Christian and is published under the spiritual patronage of St. John of San Francisco. Topics likely to be discussed include matters relating to Orthodoxy as well as other religious confessions, politics, economics, social issues, current events or anything else which interests me. © 2006-2024
No comments:
Post a Comment
Please read the guidelines in the sidebar before commenting.