Tuesday, July 30, 2013

"Treasury bill supply hits new lows"

From Sober Look:
Since the beginning of the year the US treasury curve has steepened substantially, with yields on the short-end actually declining.

There are two key reasons for treasury bill rates staying at such suppressed levels.

1. In a rising rate environment, durations are cut and demand for treasury bills increases. Investors want to stay liquid without taking rate risk, and there isn't much else out there that can provide both....MORE