Sub-zero T-bills returns give investors the chills

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 after accounting for the cost to hedge against the dollar's ups and downs - a common practice for institutions that invest internationally.