Investors Buy U.S. Debt at Zero Yield

[Silverbird]

"In the market equivalent of shoveling cash under the mattress, hordes of buyers were so eager on Tuesday to park money in the world’s safest investment, United States government debt, that they agreed to accept a zero percent rate of return."

http://www.nytimes.com/2008/12/10/business/10markets.html?_r=1&th&emc=th

Squawk! Any port in a storm!

 

[Birchtree]

They are all a bunch of cluckers - we want them all in cash while the afterburners start to kick in. The herd has an alarming tendency to buy and sell at the worst possible times.

 

[fabijo]

Nice. Also notable in that article,

Investors accepted the zero percent rate in the government’s auction Tuesday of $30 billion worth of short-term securities that mature in four weeks. Demand was so great even for no return that the government could have sold four times as much.

In addition, for a brief moment, investors were willing to take a small loss for holding another ultra-safe security, the already-issued three-month Treasury bill.