Bond Yields Move Sharply Higher, Deposit Rates Remain Low
Over the past month, long term bond yields have been on a tear while deposit rates remain at very low levels. Long term bond yields have risen each week in the month of May. 5 year Treasury yields on May 1 averaged 0.65 percent, whereas on May 31 yields averaged 1.02 percent. That is quite a remarkable gain in yields over the past month. Granted, you took a beating in the bond price if you were holding 5 year bonds since bond prices move inversely to bond interest rates.
All Long Term Bond Yields are Sharply Higher
7, 10, 20 and 30 year bond yields are also sharply higher the past month but the same can't be said of shorter term bonds, savings rates, and money market rates. These rates will move higher when the Federal Reserve increases the federal funds rate which won't happen until sometime in 2014.
Average Rates and Best Rates Remain the Same
Average savings rates this week remain at 0.07 percent while the best savings rates on our rate table is higher at 0.90 percent. The bank offering the highest savings rate this week on our list is Barclays Bank. 1 year bond yields are paying a lot less, as the average 1 year bond yield is at 0.14 percent on June 5.
Average money market rates are just above average savings rates at 0.10 percent. The best money market rates in our database are much higher. The highest money market rate this week remains at 0.89 percent APY from EverBank - that's almost nine times the national average money market rate this week.
Best Money Market Rates
Best Savings Rates
You can search for the best deposit rates by searching our rate lists at RatesORama.com/Savings-Accounts
RatesORama.com Average Mortgage Rates