Negative Rates Come to the U.S.: 1-Month and 3-Month Treasury Bill Yields Are Now Below Zero

by Jeff Cox

The coronavirus crisis has brought another first to U.S. financial markets — negative yields on government debt.

Yields on both the one-month and three-month Treasury bills dipped below zero Wednesday, a week and a half after the Federal Reserve cuts its benchmark rate to near-zero and as investors have flocked to the safety of fixed income amid general market turmoil.

The U.S. now joins large swaths of Europe and Japan that also have negative-yielding debt.

In Germany, the move was even more prevalent, with all government fixed income instruments except the 30-year bond carrying rates below zero. Denmark, France and Sweden are among other European nations also in the category.

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