Financial Times FT.com

Short View: Impossible markets

By John Authers

Published: December 10 2008 18:33 | Last updated: December 10 2008 18:33

Markets have two more supposed impossibilities to deal with: investors are paying the US government to look after their money; and Chinese exports are declining.

The yield on three-month Treasury bills went negative for a few hours on Tuesday, showing investors valued safety so much that they were prepared to pay for it. This shows extreme risk aversion.

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