U.S. sells debt with a negative yield for 1st time

[ramirez]

Oct 25 (Reuters) - The U.S. Treasury Department on Monday sold securities that fetched a negative yield for the first time, implying investors are willing to pay the government to own its debt.
This is a milestone in the current rock-bottom interest rate environment, as the Federal Reserve is widely expected next week to announce it will buy more Treasuries to jump-start a sluggish economy.

Typically, investors buy a new Treasury bond at "par" or $100. At Monday's $10 billion auction of five-year Treasury Inflation-Protected Securities (TIPS), they paid more than $105 and accepted a bond that yields nothing even after factoring in a 0.50 percent semi-annual interest payment.

[soros75]

Originalmente inviato da ramirez

Oct 25 (Reuters) - The U.S. Treasury Department on Monday sold securities that fetched a negative yield for the first time, implying investors are willing to pay the government to own its debt.
This is a milestone in the current rock-bottom interest rate environment, as the Federal Reserve is widely expected next week to announce it will buy more Treasuries to jump-start a sluggish economy.

Typically, investors buy a new Treasury bond at "par" or $100. At Monday's $10 billion auction of five-year Treasury Inflation-Protected Securities (TIPS), they paid more than $105 and accepted a bond that yields nothing even after factoring in a 0.50 percent semi-annual interest payment.

Segno evidente che c'é troppa liquiditá.

[nuovomanontroppo]

chissá cosa succederá quando questa liquiditá verrá ritirata

[soros75]

Originalmente inviato da nuovomanontroppo

chissá cosa succederá quando questa liquiditá verrá ritirata

sono stati creati i presupposti affinche' la liquiditá in eccesso non possa mai essere ritirata, pena un immediato crollo del sistema.

[nuovomanontroppo]

visto che sono inflation protected forse questi prevedono giá nei 5 anni un inflazione galoppante

[Luciom]

Ma come si fa a dire negative yield per un titolo che è inflation linked???? E' una semplice bet sull'inflazione.