If I remember correctly, in the dark days of 2008/2009, there were one or two auctions for the shortest-term US securities which did have a negative yield. The advantage of Treasury securities was that you could be assured of getting your money back at maturity, which at that time, no bank could offer. I hadn't though of the currency alternative, but I suppose turning your $100 million into 1 million $100 bills might prove logistically difficult.
Googling 'treasuries "negative interest"' turns up various references. One reference states that "the dark days" I referenced above crossed a year-end, and institutional investors want to have good-looking assets in their funds at that point, which artificially increased the demand for Treasuries.
![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
(no subject)
Date: 2011-12-27 03:13 am (UTC)Googling 'treasuries "negative interest"' turns up various references. One reference states that "the dark days" I referenced above crossed a year-end, and institutional investors want to have good-looking assets in their funds at that point, which artificially increased the demand for Treasuries.