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Author Topic: LC new interest rates Aug 2019

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LC new interest rates Aug 2019
OP: August 06, 2019, 11:00:00 PM
As investny pointed out in the other thread, LC has changed interest rates again, only 1 month after the last change.

An unusual change.  Only D rates were changed.  It really looks like a fix for mistakes made last month.  One of the odd things about last month's rates was that C5 and D1 bumped into each other, having almost exactly the same rate.  This month's change has D1 moving up away from C5.  .. and some smaller changes in D2, D3, and a tiny change in D4.
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LC new interest rates Aug 2019
#1: August 09, 2019, 11:00:00 PM
We are living in interesting times. The Federal Reserve has reversed course and lowered its Fed Funds Rate on 7/31 by 1/4%. The Fed also stopped letting bonds run off its balance sheet (quantitative tightening) two months earlier than planned. Treasury bond rates of all maturities have been steadily falling since October of last year and have rapidly and dramatically fallen over the past few weeks. They are basically within 0.25% of the multi decade lows of July 2016. These are the facts; there are many speculative reasons for them.

According to those still actively purchasing notes, LC returns are looking better than they have in years. There are clearly many risks of course. Where is that crystal ball when you need it?

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LC new interest rates Aug 2019
#3: August 22, 2019, 11:00:00 PM
Meanwhile the 10 Year UST is this morning at 1.606%, up from a low on 8/15/2019 of 1.475% (interday), 1.527% (close).
The Fed Chair speaks this morning from Jackson Hole FWIW.

Whoops, POTUS tweet alert  :o  now 1.538% 11:45 am 8/23/2019.
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