Demand for relatively safe four-week Treasury bills pushed yield rates down to zero for the U.S. Treasury. There was $5.42 in bids on the dollar, as the Treasury sold $20 billion in four-week notes. That meant for the first time in almost a year and a half, the Treasury was borrowing money on the bond market for free. With tax revenues near their seasonal peak, the Treasury was able to sell less than half of the $85 billion in T-bills it sold in an April auction, The Wall Street Journal reported. Banks buy T-bills because they are so safe they keep overall investment risks in balance. After making a few risky market bets, banks tend to turn to safer bets, like T-bills, like someone at a racetrack that makes a relatively safe bet to cover a few bets made on long shots. With bond prices determined by supply and demand, and yields inversely influenced by price, the Treasury was able to borrow at zero costs having announced recently that it would pay down $35 billion in debt in the second quarter of the year. With less government debt in supply and demand strong, yields drop.
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor