Global Rates Jump, U.S. Yields Drop
January 31, 2014
The 10 year Treasury ended the week closing today at 2.64%. The benchmark for fixed rate loans has dropped approximately 20 basis points in the past week. The drop in yield was prompted by negative international economic news.
Turkey’s central bank announced emergency interest rate hikes as a foil to declining currency issues, placing the new watermark amongst the highest of industrialized economies, and endangering their status as an attractive investing environment. Rates in Argentina followed suit, climbing aggressively over the past few days in an effort to fight ballooning inflation and anemic growth. These developments have put a spotlight on United States Treasuries, which have always been viewed as a safe haven for investment.