AWTM - Positively Not Negative

By Kevin Flanagan, Head of Fixed Income Strategy

Last week, I discussed the debate regarding Federal Reserve (Fed) policy and negative rates. In this week's blog, I wanted to follow up on the "negative rate" theme, specifically as it relates to U.S. Treasury ((UST)) T-bill rates.

I have found there is little knowledge surrounding the fact that Treasury has an auction rule whereby T-bill yields can't go negative at the actual auction itself. By rule, the lowest threshold for the high discount rate that is awarded is zero. The accompanying graph highlights where the

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