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In September, at the committee's most recent meeting, the members decided to further reduce long-term interest rates by shifting $400 billion from investments in short-term Treasury securities to longer-term Treasuries.
That makes them prefer very short-term Treasury bills with maturities of a month or less.
It thus has the opposite characteristics to the short-term Treasury bill.
There has been much more movement in the prices of short-term Treasury bills.
There is almost no penalty now for buying less-risky short-term Treasury securities.
The rush to the safety of short-term Treasury markets also slowed.
As big-name stocks fell, investors sought safety in short-term Treasury securities.
"Anything that's not a short-term Treasury is a risky asset," he said.
Treasury Rates Fall By The Associated Press Interest rates on short-term Treasury securities fell yesterday.
As a result, yields on short-term Treasury bills dropped close to zero.
The yield on short-term Treasury bills has occasionally been negative in recent years without affecting demand.
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