Bank certificate of deposit rates were little changed for the week ending June 4, 2010. Based on the most recent survey of CD interest rates performed by, the average rate for all bank CD maturities measured were unchanged with the exception of the two year term.

The average yield on the short term, 3 month CD rates, was unmoved this week. The average interest rate from the top ten best bank CDs available nationally on the three month term CD held at 0.79%.

The average rate for the top ten best six month CD rates also held their ground by the close of the week. The average yield on the six month term CD remained at 1.19%.

The best one year bank CDs continued the trend and held steady week over week. The average rate on the national CD rates with a one year term remained at 1.53%.

Two year CD rates bucked the trend and dropped modestly from the prior week. The average of the top ten best two year CD rates ended the week with a yield of 1.99%, down two basis points or 2/100 of a percent from the previous week’s average yield of 2.01%.

Five year CD rates available nationally followed the shorter term bank CDs and held constant for the week. The average CD interest rate on the highest five year term CDs lingered at 3.03% at week’s end.

For the week ending June 4, 2010 Treasury rates moved lower yet again. The six month Treasury rate and one year Treasury rate moved very little, closing with a yield where they had started. The six month Treasury rate on May 28th’s close was 0.22% and ended this Friday at that same yield while the one year Treasury rate mirrored that movement with a start and finish rate of 0.34%. The longer term Treasury rates did not fare as well. The five year Treasury rate closed May 28 at 2.10% and moved down to 1.98% by June 4th while the ten year Treasury moved from 3.31% t0 3.20% during that same time period.

For both the five year Treasury rate and ten year Treasury rate, these rates are the lowest yields of the year. The three prongs impacting bank rates of a sputtering economy, low Treasury rates and banks awash in cash lays the ground work for low bank CD rates in the near future.

After last week’s job report, sputtering may be understating the economic situation and thus giving little reason to think either the economy will expand soon or that bank lending will expand. Other than a question on how fast inflation may increase in the distant future, there is no impetus in the market for bank CD rates to rise.

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