Milestone for 2-Year Auction: Under 1%.

The article reports that the auction of two-year U.S. Treasury notes in December 2008 has resulted to a yield of less than 1% for the first time. Carl Lantz, an interest-rate strategist with Credit Suisse Securities USA LLC, said that the Treasury has gained support from the slowdown of the stock market particularly the weakness in shares of life insurers. Moreover, it claims that the low yield from the two-year notes is favorable for the government because it can continue to borrow cheaply from investors to finance its budget shortfall.