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Fed rate hike seen as irrelevant in US$2.6t slice of debt market

Unprecedented shortfall in Treasury bills expected to keep money-fund rates low

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OUT OF STEP: Average yields for the biggest money-market funds, which buy a sizable chunk of the US$1.3 trillion Treasury bills market, haven't topped 0.1 per cent since 2010, according to Crane Data LLC. In 2007, they were above 5 per cent before the Fed started slashing rates to support the economy.

New York

THE blowout US jobs report for October means the Federal Reserve may be weeks away from raising interest rates. For US savers earning next to nothing on US$2.6 trillion of money-market mutual funds, the move will barely register.

The reason is that there's an unprecedented

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