There is limited news regarding interest rates and CD rates today.  One significant point is the steeper yield curve.  All through the month of September the yield curve has continued to get steeper.  On Wednesday’s close, the six month and one year Treasury rates dropped in yield while the long term Treasury rates had a gain in yield.  The three month treasury made a surprising drop of three basis points or 3/100 of a percent which pushed the already super low yield of 0.13% down to 0.10%.

The 6 month Treasury rate ended Wednesday with an interest rate of .02%, down one basis point from the previous day.  The one year Treasury rate also fell one basis point moving from 0.39% on Tuesday to close yesterday at 0.38%.  The two year Treasury rate moved in the opposite direction, gaining six basis points to yield 1.01%.  The five year Treasury moved up five basis points to 2.16%.  The ten year Treasury gained just one basis point bringing the rate up to 3.48%.

Economic news is lackluster.  Housing starts is out but has limited value unless one can view an increase in starts as a sign that lending activity is increasing.  Otherwise, housing starts is a reflection of the building industry and we now know how unreliable measuring any activity out of that sector can be.  Unemployment claims are down 12,000 to 545,000 for the week.  These are weekly new unemployment claims.  Anything over 390,000 or 400,000 was generally considered to the signs of a recession – looks like we are still in a recession. 

Spoke with the garbage man this morning.  Trash pickup has not changed; it is still down measurably since the start of the year.  The garbage man is the new barometer of economic activity.  We are going to start the garbage man chart next week. 

State CD rate tables and national CD rate tables are updated weekly.  The selectcdrates team is busy compiling the data for this week, so far it looks like there will no jaw dropping changes in CD interest rates although the usual movement between bank CD rates offers will change, the average rates are not expected to move considerably.  Stay tuned.

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