Contrary to popular belief, interest rates can drop below zero and they have. AGAIN.. (Actually I didn’t know this happened earlier in 2003 too until I read the Fed paper)[link]
But negative repo rates on T-bills? apperently people had seen negative repo rates before on [possibly squeezed] notes and treasuries but none ever saw that on T-bills.
Quote 3 month T-bill repo: -0.20%
also 4 year notes around -0.25%.
The Fed paper [linked above] is an interesting insight and negates one more assumption of the financial markets that interest rates can not go below zero.
