by Bill McBride on 1/27/2010 12:58:00 PM
Wednesday, January 27, 2010
While we wait for the FOMC, there are signs of more economic weakness ... (update: this isn't a sign of a "flight to quality" or a panic - just too much money looking for a parking place).
From Bloomberg: U.S. One-Month Bill Rate Negative for First Time Since March (ht jb)
Treasury one-month bill rates turned negative for the first time in 10 months, as issuance declines while investors seek the most easily-traded securities amid a renewal of risk aversion.The Ten Year yield is back down to 3.61%.
The rate on the four-week security dropped to negative 0.0101 percent, the lowest since it reached negative 0.015 percent on March 26. The Treasury sold $10 billion of four-week bills on Jan. 26 at a rate of zero percent ...
And from the Chicago Fed: Midwest Manufacturing Output Decreased in December