US Treasury Offers Rates Below Zero for First Time

The yields on one-month and three-month Treasury bills Wednesday fell below zero for the first time since 2015.

The three-month yield fell to minus 0.036%, an all-time low, while the one-month yield fell to minus 0.013% in mid-morning trade. Short-term yields, which broadly reflect the federal funds rate, have fallen dramatically since the Federal Reserve cut its key interest rate to zero earlier this month to combat the economic effects of the coronavirus.

As the pandemic has roiled financial markets, U.S. government debt has seen yields fall and prices rise as investors have sought safety in high-quality bonds.

Negative rates have been recorded on European and Japanese government bonds for several years.