December 2, 2020
Treasury Note rates continued to hover near zero but there is a slight upward bias. Rates out to seven years are still .57% or less. The ten year note has been moving between .67 and yesterday’s close of .81%. .81% is very low but it is the highest we’ve seen since the end of March. As a reminder, on January 2 of this year the 10 year rate was 1.88% and one year ago it was 2.08%. So yes, rates continue to be VERY low and below the rate of inflation but we are seeing a little strengthening. It may be the economy starting to get better or too much government debt out there or inflation expectations starting to get stronger. The yield curve has continued to steepen ever so slightly with the spread at close of market yesterday between three month T-bills and 10 year bonds at 71 basis points.
The dollar continues to move lower against other major currencies, a trend that began in May.
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