Why Investors Flee To T-Bills

Today a three-month U.S. T-bill offers a return of 0.03 percent.  With such a measly return, why are people flocking to them? 

It’s pretty simple: positive 0.03 percent is better than negative anything.
Someone asked me why the rate is so low and wouldn’t it be less trouble to tuck the money away somewhere safe at home.  Here are some reasons why the rates are low and why a T-bill may be worth the trouble:
1.  Treasury rates will always be relatively low. Risk and return are directly related and since the U.S. government is believed to be one of the safest borrowers on the planet, you …read more