Safe Havens went up 10% today. T Bills dropped. http://www.bloomberg.com/apps/news?pid=20601087&sid=aCMdnmwJqCaM&refer=worldwide
Treasury 3-Month Bill Rates Drop to Lowest Since at Least 1954 By Sandra Hernandez and Agnes Lovasz Sept. 17 (Bloomberg) -- U.S. Treasury three-month bill rates dropped to the lowest since at least 1954 on concern that credit market losses will widen after the bankruptcy of Lehman Brothers Holdings Inc. and the federal takeover of American International Group Inc. Investors pushed the rate as low as 0.233 percent as the loss of confidence in credit markets deepened. Reserve Primary Fund, the oldest U.S. money-market fund, became the first in 14 years to expose investors to losses after writing off $785 million of debt issued by Lehman. ``People are extremely cautious with respect to who they're lending money to at the moment,'' said Richard Bryant, a Treasury trader at Citigroup Global Markets Inc., one of the primary dealers that trade government securities with the Federal Reserve. ``They're willing to buy very short-dated Treasury instruments and forgo returns and in some cases pay for the privilege of knowing their money is safe.'' Three-month bill rates fell 46 basis points to 0.23 percent at 9:34 a.m. in New York. They had dropped to 0.3867 percent on March 20, after the Fed and Treasury engineered the takeover of Bear Stearns Cos. <more> Interbank rates skyrocketed 19 basis points: http://www.bloomberg.com/apps/news?pid=20601087&sid=aO1crPsEJ9MA&refer=home Money-Market Rate Jumps, TED Spread Soars on Squeeze (Update3) By Gavin Finch and Kim-Mai Cutler Enlarge Image/Details Sept. 17 (Bloomberg) -- The cost of borrowing in dollars for three months jumped the most since 1999 as banks hoarded cash amid concern more financial institutions will fail. The London interbank offered rate, or Libor, rose 19 basis points to 3.06 percent, the British Bankers' Association said today. <more> Banks lose faith in their own? Terry
