Credit Market Report

March 23, 2017

Treasury yields touch 3-week low as market uncertainty surrounds key health-care vote: Treasury yields declined Wednesday, touching their lowest levels in more than three weeks, as congressional Republicans struggled to convince certain conservative legislators to support their plan to repeal and replace Obamacare.

Influencing Factors:

  • Yields, which fall as prices rise, cemented their fourth-straight daily drop. For the 10-year Treasury note, its uninterrupted 12.8-basis-point decline is the largest such streak since June 29.
  • The controversy surrounding the health-care law has prompted investors to rethink their expectations for how quickly President Donald Trump will be able to enact some of the sweeping fiscal reforms he promised during his campaign. These include corporate tax cuts, increased infrastructure spending and deregulation. Hopes for those policy changes had driven stocks to repeat records and dulled demand for bonds, dropping their yields.
  • Treasury yields shot higher following Trump’s upset victory in the Nov. 8 U.S. election, largely due to the expectation that his administration’s fiscal policies would cause economic growth and inflation to accelerate, potentially forcing the Federal Reserve to raise interest rates more quickly.

Fixed Rate Indices

Maturity Coupon Yield Change
2-year... 02/19 1 1/8% 1.252% ( - )
5-year... 02/22 1 7/8% 1.933% ( - )
7-year 02/24 2 1/8% 2.215%

( - ) 

10-year 02/27 2 2/8% 2.398% ( - )
30-year 02/47 3 0/8% 3.013% ( - )
Treasury Rates are as of 03-22-2017 as reported by The Wall Street Journal.

Prime Rate

Prime... 4.00%
Last effective change 3-16-2017

Floating Rate Indices

30-day LIBOR..... 0.98389%
90-day LIBOR..... 1.15678%
6-month LIBOR... 1.43128%
1-year LIBOR...... 1.80678%

London Interbank Offered Rates are as of 03-22-2017 as reported by The Wall Street Journal.

Spread Markets

Maturity Spreads Rate
2-year SWAP.... 36.10 bps 1.6130%
5-year SWAP.... 10.70 bps 2.0400%
7-year SWAP....  -1.50 bps 2.2000%
10-year SWAP...  -3.10 bps 2.3670%

SWAP Rates are as of 03-22-2017 as reported by ©