Fixed Income Strategies with Historically Low Interest Rates
As I write this article, the 2 Year Treasury Note is yielding 0.19%, similar maturity AA municipal bonds are yielding 0.40% and AA corporate bonds yield approximately 0.45%. In addition to these historically low rates the FED is on record as saying, “They expect. . . exceptionally low levels for the federal funds rate at least through mid-2013”. The market is anticipating and in our opinion this language is indicating that this indicating, two year period of low rates is probably a minimum time frame and low rates for three to five years or longer are very possible.