The last time interest rates were this low was when we were recovering from the Great Depression. Back in March 1942, the T-Bill rate was 0.25%. If you go back a bit farther, the rate hit 0.01% in January 1940.
expiration is going to be followed by a long holiday weekend. a lot of money market funds just don't want the exposure over a long weekend. not indicative of anything but wanting rest after a crazy week. that's my theory.
No, Makloda is correct. The market crashed due to program trading and the $70 Billion of securities that were tied to Leland, Obrien, and Rubenstein's (LOR) "portfolio-insurance" ( or "dynamic-hedging ) strategy using S&P Futures. The fllight to Treasuries occurred second. That was one of PTJ's biggest trades . . . He took limit positions in Treasuries and made a small FORTUNE!