>>I think the 1 month T-bill has been so low because some money managers
>>have nowhere else to park their funds right now:
>>
>>Here is the Treasury yield curve for the last 5 trading days:
>>1 month: 1.16, 0.71, 0.26, 0.37, 0.67
>>3 month: 1.11, 0.92, 0.61, 0.63, 1.24
>>6 month: 1.31, 1.32, 1.22, 1.20, 1.60
>>12 month: 1.32, 1.40, 1.33, 1.33, 1.68
>>(http://www.treas.gov/offices/domestic-finance/debt-management/interes
t-
>>rate/yield.shtml)
>>
>>It seems clear enough that the Fed Funds rate is not the only
determining
>>factor in what the 1-month T-bill does.
Yes... it is confusing though - are they not better off just continually lending fed funds overnight? Does this mean a lack of trust between banks even on an overnight basis? Or is the Fed actually holding _up_ the fed funds rate?
Mike Beggs scandalum.wordpress.com