The Negative Swap Rates

Jim Baugh: Negative swap rates are, we have negative swap rates. What does that mean? Well, I buy a 10 year treasury note and I finance it in the overnight markets. So, what's happening to me? I'm getting the yield on the 10 year treasury notes and I'm paying an overnight real. It's exactly the same as if you had the note and we're financing it in the repo market. That's just receive fixed, pay floating. The bond is a piece of collateral, but we can have a contract.