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Sub-zero T-bills returns give investors the chills

US Treasuries' negative yields are prompting pundits to warn of a bubble in bonds

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Last month, yields on US 10-year notes turned negative for Japanese buyers, something that hasn't happened since the financial crisis. It's even worse for euro-based investors, who are locking in sub-zero returns on Treasuries for the first time in history.

New York

FOR Kaoru Sekiai, getting steady returns for his pension clients in Japan used to be simple: buy US Treasuries.

Compared with his low-risk options at home, like Japanese government bonds, Treasuries have long offered the highest yields around. And that's been the case even...

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