Any particular situations which can lead to this?
1
-
$\begingroup$ They are considered to be more financially stable that the US government. They are considered to have lower volatility than US treasuries thus a lower risk premium. They are smaller quantities of the issues and greater demand leading to higher prices and lower yields. $\endgroup$– Attack68 ♦Sep 29 at 8:46
Add a comment
|
1 Answer
$\begingroup$
$\endgroup$
I can’t find any today. Johnson and Johnson is rated AAA and the 10yr yield is Treasury +29bp. There may have been a time during the debt ceiling drama where very short dated corporate paper traded better than Treasury bills, since the latter were potentially subject to a payment delay.
