Money market investors staged a dramatic flight to safety on Monday, knocking down yields on short-term US government debt, as top Treasury and Federal Reserve officials continued behind-the-scenes efforts to maintain confidence in the credit markets.

SHORT VIEW: T-bills yield plunge has shades of 1987

VIDEO: John Authers on a renewed flight to safety in the US markets

The yield on the one-month Treasury bill fell 160 basis points to 1.34 per cent in early trading, while the yield on three-month Treasury bills tumbled to 2.51 per cent at one point, 123 basis points below Friday's close - a sharper fall than during the October 1987 stock market crash.