1 Month Bill Offered At -0.005%; 3 Month At 0.000%

Tyler Durden's picture

Well, it's not quite the negative Bill prints we saw right after Lehman, but the second someone lifts that offer in the 1 Month, Americans will revert to paying the Treasury for the privilege of it holding 1 Month paper. Of course, the last time the 1M was on the verge of being negative, the S&P was at 666. We are now double that. What happens should stocks plummet by 50%, without the Fed withdrawing the massive amounts of liquidity still sloshing out there: -0.5%? -1.0%?

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Cognitive Dissonance's picture

Flash Crash...............Bitches.

The one month at -0.0005% brings new meaning to the term "Pay the man".

kaiserhoff's picture

Money for nothin' and chicks for free;)

Josh Randall's picture

Cue Plunge Protection Team...ready in in 5...4...3...2...

karzai_luver's picture

nothin' fo money and hoes for rent



wandstrasse's picture

and chicks for free

for free bitchez?

HelluvaEngineer's picture

Trash holding up well today.  CMG green, BIDU about to go green.  Obviously great stores of personal wealth.

oogs66's picture

i checked google trends....flash crash dropped back to almost zero...now that no one is expecting it, maybe we can get it

10kby2k's picture

5 year TIPS has been negative for a year.

Cassandra Syndrome's picture

Nobody wants to touch commodities as well. So where else can the funds go?

Ray1968's picture

Funds are getting low. Might as well just buy some beer and consume it. Then recycle the liquid waste back to Mother Earth. 


That's what the government is doing to our future... P*ssing it away.

konputa's picture



It's about the bier bitchez. I'll have something Belgian.

Kayman's picture
“We don't have a precise read on why this slower pace of growth is persisting.”

Fed Chairman Ben Bernanke A primer in economics for Ben: 1. Printing is not savings. 2. You have a demand problem. 3. You have a debt problem, relative to incomes. 4. New debt must be paid from future earnings. Ergo, no future earnings means new debt is a drag on the economy. Ben.... they want you to come to the Dean's office....
Boston's picture

Any day now, I'll start liquidating my Treasury portfolio (mostly 5 year).

But not yet.  First, Bill Gross has to start buying...... 

drom's picture

You must be dumb enough to think your smarter than Bill Gross

I am sure Groos is still shorting Treasuries and dollar cost averaging the short.  Bill Gross is not a short term trader so allthough he has not done well so far, this is only the very beginning of his trade.  He is most likely dollar cost averaging in then will hold for years, then all the idiots that thought his trade was over and done after 3 months will eat their words.

Boston's picture

Um, I went LONG 10 year notes in Feb, and my profits are locked in.  Bill Gross went flat/short.    

Who's the dummy, dummy?

Goldust's picture


Ester: Who you calling ugly sucker?

Fred: YOU!  I could push your face in some dough and make gorilla cookies.

Bananamerican's picture

Ester: Fred Sanford, you're a messy fool!!

Fred: uh, an, an' you a cessy pool!!

Voodoo-economist's picture

you shouldnt take bills public words for granted. remember, monetary policy must be surprising to have an effect.

fallout11's picture

Right. Bill often says one thing (for public consumption) and then does the opposite, or later reverses course. He even contradicts himself from time to time.  If you like I can dig up some examples. He did not start investing yesterday after all.

kito's picture

yes pay the cat burgler to guard your money

d00daa's picture

No, better to be fully invested in equities, right?  Dow 15k bitchez!!!  Fucking moron.

kito's picture

???? Youre long treasuries????

AUD's picture

The Fed Funds 'target' Rate is not quite at zero yet. There's still some room to move.

VogonPoet's picture

Why do people buy treasuries of one or three month duration at effectively 0% interest. Why not just keep the dollars and save on the transaction costs. Seriously im curious where the buying comes from and why. Thanks.

Dr. Engali's picture

Because they are stupid. And some funds have to be invested per their prospectus.

Quintus's picture

No problem with that approach if you only have $100 to invest, but if you are managing $10 billion you can't put it on deposit at a bank and you can't put it under your mattress.

VogonPoet's picture

Wouldnt I keep the cash in the same place I keep the trrasury notes, where ever those are?

Cognitive Dissonance's picture

Explain what you mean by 'cash' if you don't mean currency. Because non currency 'cash' needs a holding vessel such as a savings account or CD, money market fund or a treasury bill. 

Dr. No's picture

or a mattress....

EDIT: of course for a mattress, you need 'cash' currency, i.e. pieces of real paper.

cocoablini's picture

I think you would be safe in the low mid range- where you will not get skunked by falling prices( long) or submerged by negative- I need it now borrowing- short notes.
Hanging on to currency and cash is very,very hard in deflation.
It gets stolen, it gets taxed, it gets diluted, it gets confiscated(reverse repo) and swapped for debt.
Yes, the dollar is essentially trash, but its a transactional vehicle that everyone needs. And when they need it, they need it NOW.

spartan117's picture

You can elect to place your funds in a zero percent certificate of indebtness.  Like the name states, you get zero percent in this "account".  You can check it out at treasury direct. 

treemagnet's picture

In a cruel twist of irony.....safety.

kalum's picture

Keep the dollars? Where? In the matress?

spartan117's picture

How about Chipotles?  CMG up $0.72.  Good lord.

Boston's picture

T-Bill buyers?  

Uh, how about today's S&P (and HY and oil and any other risk asset) sellers?

snowball777's picture

Hey Ben, how much to hold these for a month?

Cognitive Dissonance's picture

He already has you by those. The question is, how much to hold this?

Silver Dreamer's picture

We are paying him, and we are not holding it.  It's inside us.

fuu's picture

Well we are holding it with a sphincter.

hugovanderbubble's picture

Credit Agricole is in Default. World Must know it

ZeroPower's picture

Largest bank in the world by bank deposits. Not so fast there...

alien-IQ's picture

I suspect that it's only a matter of time before saving money is considered an act of terrorism.

Cleanclog's picture

I wish that were funny.  But when TPTB get scared they do make all kind of "new rules" and saving money, holding gold, and feeding your children instead of theirs could become "illegal and treasonous".

Silver Dreamer's picture

Citizen, you must be in debt.  To not be in debt is economic terrorism...  sure, why not?