Traders can profit from the so-called yield curve by betting that the difference between yields on securities of different maturities will widen or narrow.
(See "Pandit Paints A Rosy Picture" and " Rally, Yes; Bottom, No").. Prices fell on U.S. Treasuries, lifting yields on securities across the maturity spectrum.
On Oct. 30, the day before the Fed cut the Fed funds rate from 4.75percentto4.5percentcenthethe yield on Fannie Mae securities was 5.75percentt.
Mr. Greenspan's favorite indicator of interest rates is not the yield on government securities, but the Standard & Poor's BBB corporate debt rate, adjusted for inflation expectations.
But even if that were to happen, municipal bond yields are sufficiently attractive so that I don't think there would be a direct impact on their yield level relative to the yield on Treasury securities.
The company makes money on the spread between its funding costs and the yield on the securities it holds.
Source: H.15 Release - Federal Reserve Board of Governors 7 ChangeChange in the market yield on US Treasury securities at 6-month constant maturity, quoted on investment basis.
Source: H.15 Release - Federal Reserve Board of Governors 8 ChangeChange in the market yield on US Treasury securities at 1-year constant maturity, quoted on investment basis.
Source: www.usagold.com 6 ChangeChange in the market yield on US Treasury securities at 3-month constant maturity, quoted on investment basis.
It is guaranteed an 11percentt yield on that security, but only for a few years.
Based on monthly data from the Federal Reserve, that is the lowest yield on a security with a 10-year maturity since July 1958.
