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Bonds, CD Rates & News Weekly Review

What's happening with Bonds and CD's, both locally and nationally? Well, here is the latest fixed-income quotes and yields.

Treasury Bonds

2/23/2010 (1 month) - 0.082/23/2010 (90 day)   - 0.122/23/2010 (1 year)   - 0.362/23/2010 (2 year)   - 0.872/23/2010 (3 year)   - 1.422/23/2010 (5 year)   - 2.372/23/2010 (7 year)   - 3.132/23/2010 (10 year) - 3.692/23/2010 (20 year) - 4.492/23/2010 (30 year) - 4.63"Five former U.S. Treasury secretaries who have served both Republican and Democrat presidents have jointly called on Congress to implement the so-called Volcker Rule to limit the size and trading of banks. Banks that benefit from public support via access to the Federal Reserve and the Federal Deposit Insurance Corp. shouldn’t 'engage in essentially speculative activity unrelated to essential bank services,' John Snow, Paul O’Neill, Nicholas Brady, George Shultz and W. Michael Blumenthal wrote in a letter published by the Wall Street Journal." Reported by Bloomberg, Feb. 22, 2010.

The Treasuries made a rally after "The Conference Board's U.S. consumer confidence index fell in February to 46.0 from an upwardly revised 56.5 in January. Economists polled... had forecast a reading of 55.0." Reported by Reuters, Feb. 23, 2010.

National US Treasury Bond Rates:

Type 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
US Treasury Bonds 0.08 0.12 0.20 0.36 0.987 1.42 2.37 3.13 3.69 4.49 4.63

For a current list of Government Bonds, click here.


Municipal Bonds

 

2/23/2010 (2 years)  - 1.062/23/2010 (5 years)  - 2.092/23/2010 (10 years) - 3.872/23/2010 (20 years) - 5.58According to Moody’s Investors Service, "Defaults by issuers of municipal bonds will rise as the worst recession since the 1930s leaves governments facing 'unprecedented stress' on their finances into next year." With that in mind, "California plans to sell as much as $2 billion of tax-exempt general obligation
bonds in early March Municipal bond issuance set a new record for the month of January, with $31.7 billion in proceeds from 654 issues in the month." Reported by Thomson Reuters Feb. 23, 2010.

National Municipal Bonds Rates:

Type 2 yr 5 yr 10 yr 20 yr
Municipal Bonds AAA Rated Yield 0.61 1.47 3.30 4.15

Type 2 yr 5 yr 10 yr 20 yr
Municipal Bonds AA Rated Yield   0.83 1.63 3.04 4.85

Type 2 yr 5 yr 10 yr 20 yr
Municipal Bonds A Rated Yield     1.05 2.07 3.60 5.68

For a current list of Municipal Bonds, choose your state: CA, OR, WA.


Corporate Bonds

2/23/2010 (2 years)  - 1.632/23/2010 (5 years)  - 3.342/23/2010 (10 years) - 4.832/23/2010 (20 years) - 6.08"U.S. corporate bonds due in five to seven years are becoming favorites for investors seeking protection from rising yields," writes Bloomberg Feb. 19, 2010. The debt offerings in 2010 are down by 33% according to Bloomberg data, Feb. 22, 2010 - "This years corporate debt sales total about $163.3 billion, compared with $218.4 billion in the similar period in 2009."

National Corporate Bond Rates:

Type 2 yr 5 yr 10 yr 20 yr
Corporate Bonds AAA Rated Yield NA 2.85 3.69 5.16

Type 2 yr 5 yr 10 yr 20 yr
Corporate Bonds AA Rated Yield   1.34 3.19 5.12 5.56

Type 2 yr 5 yr 10 yr 20 yr
Corporate Bonds A Rated Yield   1.65 3.35 4.83 6.10

For a current list of Corporate bonds, click here.


Certificates of Deposit (CD's)

2/23/2010 (6 months) - 0.302/23/2010 (9 months) - 0.452/23/2010 (1 year)   - 1.002/23/2010 (2 years)  - 1.802/23/2010 (5 years)  - 2.75"When an acquiring bank takes over the deposits of a failed bank, the acquiring bank can change the terms of the acquired certificates of deposit. That goes beyond just the interest rate the acquiring bank pays on the deposit to include early withdrawal policies and penalties," says Bankrate.com on Feb. 23, 2010. Even with the bank changes and the raised discount rate, MonitorBankRates.com (‎Feb. 22, 2010‎) believes that "The Federal Reserve Board raised the discount rate one quarter percent to 0.75 percent. The discount rate is the rate banks pay for emergency loans. A higher discount rate doesn’t mean we will see higher CD rates."
 
National CD Rates:
 
Type 1 yr 2 yr 5 yr
CD Rate Yield     1.39 1.86 2.782

For a current list of CD Rates, click here.




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