NEW YORK, Sept 17 The yield on 3-month U.S.
Treasury bills US3MT=RR fell to 0.02 percent early afternoon
New York trade on Wednesday amid investors' panicked scramble
into the safe haven of ultra short-dated government securities,
The 3-month U.S. Treasury bill yield "last traded at 0.02
percent as an actual trade and may have traded negative earlier
today," said Sean Murphy, Treasuries trader at RBC Capital
Markets in New York, shortly after 12:30 p.m. EDT (1630 GMT).
The last time the 3-month U.S. T-bill yield was at or below
zero was in January 1940, said Bryan Taylor, chief economist
with Global Financial Data in Los Angeles.
Murphy cited "a flight to quality into the Treasury bill
market." "People are just panicking and they just want their
principal," he said.
Andrew Brenner, analyst at MF Global Inc, said the 3-month
bill traded at 0.02 percent.
"Probably there's disappointment in the Fed's decision (to
hold interest rates unchanged) yesterday and what's transpiring
is that banks are just pulling back and not lending and not
being able to get the funding they need," Murphy said.
(Reporting by John Parry; Editing by Chizu Nomiyama)