TYBS - Negative Rates: Could It Happen In The U.S.?
By Laurie Brignac, Head of Global Liquidity Portfolio Management, Head of Global Liquidity Portfolio Management, and Rob Corner, Senior Client Portfolio Manager
We believe it's unlikely the Fed will institute a negative interest rate policy.
Questions have surfaced recently about the possibility of negative rates in the US. Similar questions arose back in March when the Federal Reserve (Fed) quickly cut interest rates from its target range of 1.50%-1.75% to 0.00%-0.25%. At the time, markets reacted strongly. Treasury bill (T-bill) yields fell into negative territory as investors flocked to the safety of short-term Treasuries