Treasury Bond Yields:
U.S. Treasuries:
Bills/
Notes/ Yields%
Bonds Today: Closing Yields on Friday:
| |
7/22/2008 |
7/18/08 |
7/11/08 |
06/16/08 |
03/17/08 |
12/31/07 |
6/12/07 |
12/31/06 |
| 3-Month |
1.55 |
1.48 |
1.62 |
2.07 |
1.32 |
3.36 |
4.72 |
5.02 |
| 6-Month |
1.95
|
1.91 |
2.02 |
2.42 |
1.31 |
4.49 |
4.97 |
5.09 |
| 2-Year |
2.74 |
2.66 |
2.59 |
3.02 |
1.35 |
3.05 |
5.08 |
4.82 |
| 3-Year |
3.05 |
2.97 |
2.88 |
3.33 |
1.52 |
3.07 |
5.13 |
4.74 |
| 5-Year |
3.48 |
3.42 |
3.27 |
3.73 |
2.23 |
4.45 |
5.18 |
4.70 |
| 10-Year |
4.14 |
4.11 |
3.96 |
4.25 |
3.34 |
4.04 |
5.26 |
4.71 |
| 30-Year |
4.67 |
4.66 |
4.52 |
4.77 |
4.17 |
4.45 |
5.35 |
4.81 |
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(Today's Yields may only be adjusted once per day and may not have been adjusted yet today. The source of the yields above are from sources believed to be reliable which includes Federal Reserve historical data and are only to be used for the purpose described on this page and for basic informational purposes.)
Lowest 5 Year on Record: 2.08% - 6/13/2003
Lowest 10 Year on Record: 3.13% - 6/13/2003
Lowest 30 Year on Record: 4.17% - 3/17/2008
What does this have to do with Annuities?
The direction of these Yields (NOT the Actual Yield) are an indicator of the direction of Annuity Interest Rates and Annuity Payout Rates. Also to some extent they have a minor effect on Index Annuities.
The Key Yield to watch is the 10 Year Treasury under normal market conditions.
Conditions are not normal currently. Spreads between Treasuries and other Bonds have widened. This continues currently!
7/18/2008 Note: Stocks have rallied late this week. This is nothing more than a short covering ralley/bear market ralley and will prove to be a Bear Market Trap! Be careful... don't get talked into buying stocks or equity funds at this time. You will regret doing so for the rest of your lives. Interest rates have also bounced up in these last few days. I think this will turn lower as well.
7/15/2008 Note: Treasury Rates have declined over the last 30 days and I am receiving information from the Annuity Companies that current Rates may decline by the end of the month if this continues. The Time to Buy is Now!
6/27/2008 Note: July 1 rates are beginning to come in and are up to unchanged. I repeat... June, May and July over the last several years have proven to be the Highs in rates and payouts for the year. It's possible that this may happen again. A 9 Year Guaranteed Rate of 5.63% is extremely attractive to lock in now. 5.25% for 5 years and 5.20% for 4 years are also attractive. Walk away at the end of the term if you choose.
The Bear Market in stocks will continue with all technicals in the major indexes breaking down over the last several days. This will be a BIG move down from here IMO. Don't expect any help from the consumer. The consumer ATM (Home Equity) is on empty and once they max out credit cards the recession will finally show up in the GDP numbers. Compound this with a likely Obama win and more of a democratic majority in the House and Senate. This change in Washington is guaranteed to lead to an increase in Income and Capital Gains Taxes and the Stock Markets may really get ugly as investors rush to cash in long-term gains before the proposed doubling of Capital Gains Tax Rates become effective (Probably 1/01/2009).
06/07/2008: June Annuity Rates are 95% in and most have held steady with several increases. June, May and July over the last several years have proven to be the Highs in rates and payouts for the year (You can see the high period from the Treasury chart above). Will this period prove to be the highest again???? Tough call... But these current rates are very attractive and if you have been looking at Annuities to Buy from January to Today, NOW is the time to execute your purchase. Please contact us for updated Immediate Annuity Quotes. (Click Here) 7 to 10 Year Guaranteed Fixed Rate Annuities are also very attractive along with any of the Index Annuities we recommend for a NO RISK opportunity for Higher returns than other Fixed Income instruments.
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Normal Market:
For Example: If the Insurance Company last changed Rates 3 weeks ago when the 10 Year Yield was at 5.16% and the 10 Year Yield today is 5.00%, a change of 16 Basis Points or a 0.16% change lower, then you should expect a Decrease in Immediate / Income Annuity Payouts and a Reduction in Deferred Annuity Interest Rates at some point in immediate future if this lower rate level holds. The amount of the Annuity change may be higher or lower than this Treasury Rate change because the Annuity Rates are NOT based on the Actual Treasury Rates. The opposite is true for Increases in Yields. Most insurance companies will adjust all their annuities with a 1 to 3 week time lag following a change in Yields and most of the time with limited notice.
Remember, this is ONLY a Directional Indicator and based on our experience a prolonged move of at least + or - 0.15 may trigger an adjustment in Annuity Rates and Annuity Payouts. The exact time of the change is hard to predict.
