Presented by Matt Glova and the LifeTime Asset Management team:
August 31, 2020
The 10-year Treasury yield reached 0.78 percent late last week, rebounding from a low of 0.62 percent only a few days earlier. It opened at 0.73 percent on Monday morning. The 30-year jumped from 1.32 percent to 1.57 percent, opening Monday at 1.52 percent. On the short end of the curve, rates started the week higher but moved to their lowest levels in three weeks, with the 2-year opening Monday morning at 0.13 percent. Primary factors affecting rates are supply, Federal Reserve (Fed) involvement, and the coronavirus pandemic.
August 24, 2020
Rates retreated a bit last week after increasing notably the previous week. The long end of the curve saw the largest declines, with the 10-year Treasury yield falling from 0.69 percent at the start of the week to 0.64 percent, while the 30-year dropped from 1.43 percent to 1.35 percent.
August 17, 2020
Last week’s heavy supply certainly affected the long end of the curve, as the 10-year Treasury yield moved from a historical low of 0.50 percent to 0.72 percent. (It opened at 0.69 percent on Monday.) The 30-year, which was at 1.18 percent last week, spiked and opened at 1.43 percent on Monday. The 30-year seems to have created a floor around 1.20 percent over the past five months, as it has not approached the historical low of 0.997 percent it set in March 2020. The 2-year, which opened the month at a steady 0.11 percent, backed up to 0.16 percent last week and opened at 0.14 percent on Monday.
August 10, 2020
The 10-year Treasury yield reached another record low last Thursday of 0.50 percent before slowly increasing to 0.55 percent, where it opened Monday morning. The 2-year also reached a new low last week of 0.11 percent before opening on Monday at 0.12 percent. The 30-year remains well above its historic low yield, trading at 1.22 percent on Monday, and the 20-year is trading at 0.95 percent, slightly above its historical low. The large amount of new 10-year and 30-year supply this week could move rates higher.
August 3, 2020
Treasury rates reached historical lows last week as the 10-year yield slid to 0.51 percent. The 30-year touched 1.20 percent, its lowest level since April, and the 2-year reached its new low of 0.10 percent on Monday. Poor gross domestic product (GDP) numbers from last week, combined with Federal Reserve (Fed) commentary on providing more support and the continued battle with COVID-19, had a hand in pushing rates (especially shorter-term rates) to new lows.