U.S. Treasury Yields Fall Again
December 04, 2007
U.S. Treasury yields are lower this week across the board from 3-month T-Bills to 10-year T-Bonds. Yields below 3% are now the rule (except for a bump in the yield curve at 6-months where the yield jumps over 3.10%) for all the U.S. Treasuries with maturities 5 years and less.
The Federal Reserve meets next week with most economists predicting at least a 25 point cut in the fed funds rate to back up the recent comments by Fed officials that the housing downturn and credit crunch is on the Fed's radar. Consumers may see a Christmas present from the Fed in the form of lower rates on their credit cards and home equity loans. Investors who like to income-producing investments are likely to see lower rates heading into 2008 on their investments.
