Interest Rate Update

It may seem as if interest rates have risen dramatically over the past few months, but in reality, the interest rate market has been quite stable this year and has traded in a tight range. The benchmark 10 Year Treasury had its annual low of 2.00% in August, and has gone up to 2.35% today (10/5/17). When considering that the 10 Year Treasury was as high as 2.62% in March, we are only at the mid-point of this year’s trading.

It still appears that a combination of a tame outlook for inflation, volatility in the international political environment, and the attractiveness of the US Treasury yield in comparison with the German Bund and the Japanese 10 Year Bond, is keeping the US 10 Year Treasury really low by historical standards.