Trump said there was no reason to be in money markets or short-dated Treasury bonds.
The gravity of the situation is exemplified by the crunch on liquidity in the short-dated cash market.
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Italy's borrowing costs leapt to a four-month high at a sale of short-dated government securities on Tuesday.
The ministry's outstanding corporate debt, ranging from long bonds to short-dated bills, stands at 711.5 billion yuan.
Only then, if needed, might the ECB deploy its fire-power to buy short-dated debt in the secondary market.
Two year yields rose to 0.89% following the labor report sending short-dated notes to the lowest in 10 months.
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Mr Draghi said they would involve short-dated debt - not the longer term government bonds included in the SMP.
Sentiment was further eroded after an auction of short-dated Italian government bonds saw borrowing costs leap to a four-month high.
Since stocks typically underperform in a deflationary environment, which leaves little room for margin expansion, Credit Suisse recommends cash and short-dated bonds.
For some banks, the combined issuance of asset-backed securities and commercial paper (short-dated securities) amounted to about half of all their loans.
Short-dated bills of acceptance rose by six basis points as investors reduced expectations for a rate increase in coming months and lowering implied yields.
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The 5.29% yield tightened relative to treasuries by eight basis points on the day leaving the spread at 586 basis points above government short-dated paper.
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Short-dated conventional bonds have such low yields (the two-year Treasury pays just 0.34%) that investors in them are almost certain to lose money in real terms, too.
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The economy ministry also hopes to cut its interest burden by strong-arming pension funds (over sour looks from the big rating agencies) to swap short-dated government paper for long-term bonds.
For instance, in emerging markets such as South Korea he has been buying short-dated bonds paying 2.5 to 3 per cent, with the prospect of gains from currency movements over time.
Short-dated futures responded more to this less optimistic forward-looking indicator than to the inflation reading given that it is not only backwards looking but also based on the fact that the ECB has already shown its readiness to raise rates on inflation grounds.
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Many investors, especially in low interest rate countries like Japan, can borrow money at low cost and invest it in Brazilian local currency bonds that pay much higher yields for both short and long-dated bonds.
As part of the program, the central bank sells short-term Treasurys and buys longer-dated ones in an effort to keep long-term borrowing costs down.
Geopolitical jitters, he explained, had sparked notable backwardation in Brent, which means short-term contracts are trading at a premium to longer-dated ones, a sign that investors are fearful of the future and prefer to buy today.
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The railway ministry, which is China's largest corporate-bond issuer, used all of last year's quota for long-dated bonds and also raised an additional 50 billion yuan via short-term bills and medium-term notes.
In others it may be because central banks have rigged the yield curve, holding short-term rates artificially low and inducing banks to make money by buying longer-dated government bonds.
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