February 20, 2020
Short term rates have stayed about the same since the beginning of the year but as you move further out rates have seen a marked softening. Short term rates are holding steady in the 1.50-1.60% range on notes up to a year, and then they drop at 2 years and beyond. The 10 and 30 year notes are both down 36 basis points since the beginning of the year. The Fed seems to have no interest (pun intended) in raising rates in this economy and with the unknown impact of the corona virus there is some uncertainty about the economy. And most central banks around the world seem to be of the same mind. With the recent drop in longer term rates and stable short term, the yield curve has again gone negative. The spread between three month T-bills and 10 year bonds is now a negative 6 basis points. The dollar has been stable against most major currencies over the past eight weeks but is showing strength against the euro.
Contact us today to get current rates and terms!