Still, its nice to see the ball rolling a bit further than usual at The Economist, which has been woefully simplistic in recent years.
Full article here.
That, the authors say, is evidence of the higher value investors place on holding something that is 100% safe (a Treasury bond) rather than almost 100% safe (the AAA-rated corporate bond). At the same time the spread between AAA-rated and lower-rated corporate bonds also widens, a sign that the supply of Treasuries has a broader effect on the price of safer assets. Lower amounts of Treasury debt also lead to a wider spread between Treasury-bill yields and the interest paid on federally insured bank certificates of deposit. Since both are guaranteed by the government, the authors attribute the lower relative yields on T-bills to increased demand for their superior liquidity.