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U.S. Sells Debt at 0% Yield for First Time Since Early Pandemic

  • Front-end investors struggling to find a home for their cash
  • Auction yields at this level will be the norm, Jefferies says
Updated on

The Treasury’s bill auctions Thursday drew the lowest yield in more than a year as an excess of cash in front-end of fixed-income markets kept borrowing costs anchored near zero.

The U.S. government’s $40 billion sale of four-week bills on Thursday went off with a yield of 0%, the first time that has happened since March 2020, in the early months of the coronavirus pandemic. The Treasury also sold $40 billion of eight-week bills at 0.01%. Existing rules prevent issuing debt with negative yields at auction.