US Treasury Bills Go Negative!

A return to normal times? Not quite. That's if we are to base it on US treasury bills which has struck a negative yield last night!

Another nice chart from Bespoke...

According to Bespoke, ``While the equity rally is helping some investors feel like we are returning to something resembling a sense of normalcy, a look at the yield on the 30-Day US T-Bill shows that things are anything but normal in the credit markets. For the first time this year, its yield dipped back below zero this morning. Now the government is even taking money from people who want to loan it money!"

My comment:

These are not normal times, as markets have been severely distorted by massive government interventions.

Another, US treasuries are generally considered "risk free", yet the one month US T-bills yield returned marginally negative yesterday. Although an anomaly, this suggest that not even government backed papers can be qualified as entirely "risk free".