All T-Bills Up To 3 Months Now Have Negative Yields


52
8 shares, 52 points

There was something odd about today’s continuation rally in stocks: while risk properties skyrocketed, the VIX hardly moved. In truth the Vix is now roughly where it was on Monday, mainly overlooking the move in stocks.

However there was another more ominous move in today’s risk rally, which as we noted earlier, appears to have been mostly a massive brief capture, in fact the greatest two-day short squeeze in history …

… namely the persistent purchasing of safe houses such as Treasurys however more importantly, Expenses.

And so, one week after we reported that yields on many T-Bills through 3 months turned negative for the very first time considering that the financial crisis, today practically all Expenses developing around July had a negative yield.

Needless to say, a scramble for both cash-equivalents (i.e. Expenses) and stocks is rather unorthofox, and stimulated dispute amongst Wall Street desks what might lag it. One answer that emerged is that for those who did not trust today’s stock rally and wished to assign their funds somewhere else, yet in the absence of available physical gold as an outcome of the unprecedented scarcity described yesterday, the one place where investors could discover “money equivalent” securities was among the short T-Bill maturities.

If this theory is correct, it would mean that the pent up demand for physical gold is unprecedented and any freshly readily available precious metal will be rapidly purchased as soon as it is readily available, which in light of the unprecedented expansion in reserve bank balance sheets as essentially every state is now pursuing helicopter cash, is hardly that surprising.

Material from.
ZeroHedge.com RSS feed.


Like it? Share with your friends!

52
8 shares, 52 points

What's Your Reaction?

win win
0
win
Funny Funny
0
Funny
WTF WTF
0
WTF
Dislike Dislike
0
Dislike
Like Like
0
Like
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format