Run on Treasury Bills Spurred by Subprime Contagion

Discussion in 'Wall St. News' started by SethArb, Aug 16, 2007.

  1. excerpted from bloomberg news wires

    - Investors are scooping up U.S. Treasury bills like few times in history as an expanding credit crunch makes it hard for companies to roll over short-term debt.

    The yield on the three-month Treasury bill fell 0.44 percentage point today to 3.66 percent, the lowest since October 2005. Yesterday, the yield tumbled 0.54 percentage point, the biggest single-day decline since Oct. 13, 1989, when the Dow Jones Industrial Average tumbled 6.9 percent. Both exceeded the 0.39 percentage point drop in the aftermath of the Sept. 11, 2001, terrorist attacks.-
  2. Whoa!