NEW YORK - November 25, 2009 - Yields on short-term U.S. government debt have fallen into negative territory, as banks and investors park their cash in havens before the year’s end.

Strong demand for U.S. Treasury bills with durations of one year or less suggests that fear still pervades the financial system, as investors show their willingness to forgo interest income or even take a small loss in order to own securities considered safe.

In the bond market, fresh demand for short-term government debt also extends to the two-year note, reflecting the push by institutional investors to clean up year-end balance sheets.