>An interesting thing has happened in the past few weeks. Short term interest rates have dropped, in some cases significantly. The one month treasury bill yielded 5.05% at the beginning of the month, as of today’s close (8/15/07) it yielded 4.18 (dropping .44% today). The three, six, one year, and two year have also come down, though not quite as much. The effect of this drop will be felt in about a month. Money Market rates will, if rates don’t change start dropping from above 5% to below, in some cases significantly below.
We just might be seeing a change in where the sweet spot on the yield curve is, I’ll keep you posted.
Scott Dauenhauer CFP, MSFP, AIF