TBill Interest Rates

I noticed that the interest rate for latest auction of 90-day TBILLs dropped to 1.71 percent from 1.85 percent last week. This is a little surprising since inflation seems to be picking up. So why did the rate drop? I think that the credit market crisis is forcing investors to move to safer ground. Investors are worried about the future. The demand for treasuries increases its price and reduces the rate. "Danger (ahead), Will Robinson!" Rich

I noticed that the interest rate for latest auction of 90-day TBILLs dropped to 1.71 percent from 1.85 percent last week. This is a little surprising since inflation seems to be picking up. So why did the rate drop? I think that the credit market crisis is forcing investors to move to safer ground. Investors are worried about the future. The demand for treasuries increases its price and reduces the rate. "Danger (ahead), Will Robinson!"

Rich

Agreed but later when interest rates rise, it will not be a signal all is well. Just a sign that another area of preceived safety
is less than safe.

I don't know nuthin but I think I remember Japan paying people to borrow money.