4-Week T-Bill Pays 0% Interest Rate – Chart of The Day

Will you buy an investment that gives you zero return?

Under normal circumstance, I assume nobody will take such an investment. After all, investing is about return, right? Seeking return is what people normally do. However, now is not normal. Safety is on everybody’s mind. And when safety becomes the first priority, investors turn to U.S. Treasury securities, bills, notes, and bonds, which are seen that the safest investments.

The result?

Yields of Treasury securities are pushed to record lows, as we saw early with 10-year notes. Today, Treasury auctioned $40 billion 4-Week T-Bills at an interest rate of, well, 0%!

2008 4-week T-bill rates

Can you imagine that? It looks like safety is the only concern investors have right now.

For once, 4-Week T-bill was one of my favorite short-term investments for its return, flexibility, and safety. But now, investing in 4-Week T-bill is like putting my money under the mattress, only safer :)

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5 Responses to “4-Week T-Bill Pays 0% Interest Rate – Chart of The Day”

  1. Diana |  Dec 11, 2008 at 10:33 pm

    I read about this too but being not familiar with T-Bills, I am confused. What is the point of investing in 0% T-Bill if I can at least get some interest from an online savings account?

  2. Dave |  Dec 13, 2008 at 1:05 pm

    the T-Bills are safer than savings account, at least when you’re talking about amounts over what FDIC insures…

  3. Sun |  Dec 14, 2008 at 10:05 pm

    Yes, you are willing to accept zero interest only when safety is the only concern. For some people, the US government is the safest place to put their money. Banks, despite the FDIC insurance, are not as safe.