How can interest on T-Bills hit ZERO!?

http://biz.yahoo.com/ap/081209/meltdown_treasurys.html

Answers

readytoretire answered a question in Debt/Bonds.
2222 points

readytoretire answered one year ago …

Easy. When people have no faith in anything other than the T-bill, and they don't want to be tied up for long term (like 3 months or more), they will accept less and less to get that security. As the government offers less and less, but it keeps getting accepted, the price goes down to zero on the interest rate. There were enough people willing to take zero that the dollar amount financed was 30B. I think the government could actually charge some for safeguarding the money right now.

Read more from readytoretire