Interest Rate Update – July 2018

July 19, 2018

The 10-year benchmark US Treasury (US10Y) closed today at 2.83%. July has presented us with the most stable month-to-date of 2018. Ranging between a low of 2.81% and a high of 2.87%, the US10Y looks to close out a second consecutive month with little change. January through May saw an average monthly change of 6.73%; June and July have combined for a calm 0.38% adjustment.

“With bond yields being somewhat more stable, we’re actually starting to see an uptick in interest in our asset class. So, there is a little bit of a squeeze. There is money coming into the market.” said George Bory, Managing Director, Wells Fargo Securities during an interview on CNBC’s “Futures Now”. However, Bory doesn’t think the calm will last as he goes on to say; “The bad news is it’s probably not going to last all that long. We think it’s a summer phenomenon that we’re in the midst of. It probably runs for another four, maybe six weeks.”