On dec 9th the treasury Auction 23bn in T bills and they sold at a realized rate of 0.19 percent for a three month bill. That is statistically so close to par that it only pays for large investors to put money into them. At the last auction they where some where in the range of 2% that was three months ago. Now I am not an economist but I was told by my local bank branch manager that this could cause a large devaluation in march when these bills are cashed in. Due to the fact that nobody will be buying them because there in no money to be made. So like I said I am not an expert in his area so I am wondering what others out there think?
Also I read today that Deutsche Bank is not going to pay off one of there hybrid-capital bonds in order to preserve there cash position this means they will have to pay intrest on it at I think it is 2.9% on 1.4 billion dollars. When I see a bank that is trying to preserve capital I am thinking that they are hunkering down for a long cold resecion / depresion makes me think that they know something the rest of us only suspect. What do you all think?