MATT VARNER'S  FIXED INCOME REVIEW

January 17, 2018

U.S. Treasury Yield Comparison

Source: U.S. Department of Treasury 

Market Recap 

The chart above lists yields for U.S. Treasury securities at year-end and yesterday. Since the end of the year yields on all securities listed have increased. The steepness of the yield curve as measured by the difference between the two-year maturity yield and the ten-year maturity yield has stayed the same at 0.51%. 

On Friday, the yield for the two-year U.S. Treasury note exceeded two percent. This is the first time it has reached this level since September 2008. 

The Federal Reserve announced last week that it transferred $80.2 billion in profits to the U.S. Treasury. The bulk of this profit was a result of interest on assets it held due to various bond purchase programs. This year’s transfer to the Federal Reserve to the U.S. Treasury was lower than the transfer of $91.5 billion made last year. 

The next Federal Open Market Committee (FOMC) meeting is scheduled for January 30th and 31st.


Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and individual company web sites and press releases.

Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice.  The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness.  References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service.  Past performance is not a guarantee of future rates.

 

 

 

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