For years to come, municipal bond traders and other industry followers will tell their children and grandchildren the harrowing tale of The Day Treasury Yields Turned Negative.
Four-week notes traded at a yield of zero while three-month notes went for 99 cents on the dollar. For you non-finance types, that means that investors bought billions of dollars of bonds today that were guaranteed to lose them money. As the NYTimes puts it:
The news sends a sobering signal: in this environment, losing only a small amount of money on an investment is tantamount to coming out ahead.
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