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cheapbag214s · Posted: Sun 13:17, 17 Nov 2013 Post subject: banks tend to turn to safer bets

Treasury sells $20 billion 4-week notes with strong demand
WASHINGTON, May 8 () -- Demand for relatively safe four-week Treasury bills pushed yield rates down to zero for the U.S. Treasury.There was $5.42 in bids on the dollar, as the Treasury sold $20 billion in four-week notes. That meant for the first time in almost a year and a half, the Treasury was borrowing money on the bond market for free.With tax revenues near their seasonal peak, the Treasury was able to sell less than half of the $85 billion in T-bills it sold in an April auction, The Wall Street Journal reported.Banks buy T-bills because they are so safe they keep overall investment risks in balance.After making a few risky market bets, banks tend to turn to safer bets, like T-bills, like someone at a racetrack that makes a relatively safe bet to cover a few bets made on long shots.With bond prices determined by supply and demand, and yields inversely influenced by price,[url=http://www.christianelouboutinoutlet.com]Christian Louboutin Clearance[/url], the Treasury was able to borrow at zero costs having announced recently that it would pay down $35 billion in debt in the second quarter of the year. With less government debt in supply and demand strong, yields drop.