Investors first offered US Treasuries at 0%, but the demand was huge

It seems that investors have
there is no place to invest. otherwise, just
it is not clear why the United States held an auction
placement of three-month bonds,
because the return on it was
0% - which is lower than after the Lehman collapse
Brothers.

Of course, there were such
cases where the yield on debt
instruments is reduced to zero, and even
I went into the negative border, but
auction for the first time this happened.
Some analysts have even joked that
US reportedly turned to Europe, so
no one is surprised to see the negative
rates in the near future. But,
Recall that Fed Chairman Janet Yellen
recently warned,
that nominal interest rates
It can not be "highly negative".

At this auction sold
securities only $ 21 billion, with the demand,
despite the zero rate of return,
It was the highest in the last three
months. In the secondary market yield
three-month bonds was slightly higher
- 0.003%. In fact, this placement
might well be called a milestone, because
it became clear - the Fed can not disperse
inflation and generate returns,
although the US government at the same time
We were able to raise money
at par, anything for it without paying. And, of course, the most important thing
for investors - the market is convinced that the Fed
It will not raise rates until the end of the year.
Short-term debt instruments
sensitive to changes in expectations for
rates, so the market is unlikely here
err.

When at last
meeting of the Fed announced that it does not raise
rate yield Treasuries instantly
collapsed, and after Friday's weak
Labor market participants report
all no doubt. And in
result demand has grown on Monday
risky assets - stocks, currencies of developing
countries, raw materials and the demand for protective
Instruments fell - the yield on
ten-year Treasuries rose from
five-month minimum 1,989% to 2,058%.

increase the likelihood
rates before the end of the year is now estimated
markets in 32%.

By the way, the Fed's actions
- is not the only cause of the fall
government bond yields. The US Treasury recently
reduced the volume of sale of promissory notes to
not reach the debt ceiling. If and
the end, the issue the debt limit will
actual, it is likely that we will see again
yield growth.

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