U.S. bond yields go negative again as investors seek coronavirus safety
U.S. Treasury yields on one-, two- and three-month maturities all turned negative late Monday, as investors continued to favor short-term debt that functions like cash.
What it means: “What you are seeing today is an example of a flight-to-safety on a massive scale,” Kathy Jones, chief fixed-income strategist at Charles Schwab, told FT on Wednesday when yields first fell below zero.
- Short-dated Treasury bills are seen as more like cash because they are easier to trade than their longer-dated counterparts, Jones said, adding, “People are desperate for cash.”
The big picture: The U.S. is the first major economy in which government bond yields have turned negative before the country's central bank announced it would enact policy to push them below zero.