Long Term Treasury Yields Move Higher as Savings Rates Remain Stable
Rates are higher on all Treasuries that have terms of 2 years or more. Average 10 year yields increased from 1.66 percent on May 1st and closed at 1.90 percent. The big news last week that sent yields higher were lower than expected jobless claims numbers. Initial claims, which is jobless claims measure the number of filings for state jobless benefits, came in at 323,000, lower than the expected number of 340,000.
Last week's number was the lowest number in 5 years, pointing to an improving job market as companies laid off fewer workers. The unemployment rate fell to the lowest point since 2008 in April. The current unemployment rate is at 7.5 percent. The rate is only 1 percent higher than the point that Federal Reserve said they would start tightening monetary policy. When the Fed starts increasing the federal funds rate interest rates on deposit accounts and short term Treasuries will also move higher.
Below is a list of the best savings rates, money market rates, and U.S. Treasury rates for the week of May 13, 2013. The highest savings account rates, money market rates and average rates remain unchanged this week. Short term U.S. Treasury yields remained unchanged as long term Treasury yields continue to move higher on a better long term outlook for the economy.
The highest savings rates on our rate table this week remain unchanged at 1.00 percent. CIT Bank is offering a 1.00 percent rate for account balances of $25k or more, account balances of less than $25k earn a rate of 0.90 percent.
The highest money market account rates on our tables this week also remain unchanged at 1.01 percent APY. The bank offering 1 year rates at 1.01% APY is EverBank. Average savings rates in the FDIC survey this week are unchanged at 0.07 percent and the average money market rate is unchanged at 0.10 percent.
Here is a list of this week's best interest rates and current bond yields:
Money Market Rates
U.S. Treasury Yields
RatesORama.com Average Mortgage Rates