"Point of no return: Interest on T-bills hits zero" writes AP, saying, "Investors are so nervous they're willing to accept the same return from government debt that they'd get from burying money in a coffee can -- zero. The Treasury Department said Tuesday it had sold $30 billion in four-week bills at an interest rate of zero percent, the first time that's happened since the government began issuing the notes in 2001. And when investors traded their T-bills with each other, the yield sometimes went negative. That's how extreme the market anxiety is: Some are willing to give up a little of their money just to park it in a relatively safe place." The article quotes Lou Crandall, chief economist at Wrightson ICAP, "No one wants to run the risk of any accidents." It also quotes Crane Data LLC's President Peter Crane, "There's a price for safety.... Down slightly is the new up." See also, Bloomberg's "Treasury Bills Trade at Negative Rates as Haven Demand Surges", which also mentions, "Money-market mutual funds that buy mostly Treasuries are starting to turn away new investors as the record low yields pull down returns for shareholders and squeeze managers' fees." Finally, see the U.S. Treasury's "Daily Treasury Bill Rates" page.
