3mo Treasury Bill Yields Go Negative

Treasuries of all durations continue rallies as investors flock to the safety of (albeit highly leveraged) government-backed bonds, with 3mo bills rallying so much the yield is now -1 basis point.

Treasuries rose, pushing yields on the three-month bill to minus 0.01 percent, as U.S. stocks declined amid concern that the recession will deepen.

The government sold $30 billion of four-week bills at zero percent for the first time since it began selling the securities in 2001 amid persistent demand for the safety of U.S. debt during the worst financial crisis since the Great Depression. The Standard & Poor’s 500 Index lost 1.4 percent.

The benchmark 10-year note’s yield dropped six basis points, or 0.06 percentage point, to 2.67 percent at 1:35 p.m. in New York, according to BGCantor Market Data. The 3.75 percent security due in November 2018 gained 18/32, or $5.63 per $1,000 face amount, to 109 10/32.

The two-year note’s yield fell seven basis points to 0.87 percent.