Interest Rates on the Rise

On the eve of the Fed meeting on September 18th, the 10 year Treasury yield was 3.6%.  In a bold move, the Fed cut rates .5% as inflation appeared to be under control.

Market commentators babbled about the Fed ‘Sticking the Soft Landing’ during October, but in reality, US Treasury rates across the board ROSE, even though the yield curve inversion reverted in mid October.  Just before the election, the 10 year Treasury was at 4.3% and the 2 year Treasury yield was at 4.1%

The market reaction to the election results speaks volumes about our economic prospects.  The day after the election, 11/6/2024, rates spiked higher still, up 5% in the few hours of the day, at 4.475% and climbing, and the 2 year is at 4.3% and climbing.

Higher rates have mixed effects – higher borrowing costs for companies and higher mortgage rates for home buyers are not good for the economy.   On top of that, the next few years will be tumultuous and exhausting and unstable, which compounds with higher interest rates to create more drag on the economy.   

But higher rates also mean a higher yield on savings and fixed income investments like DCF Income Payments.

Astute buyers of DCF Income Payments will see that the yields on our assets today are back up where they were prior to the rate cuts of September, with many payment streams at 6% yield or more.  The continued upward pressure on long term rates means lower prices and higher yields on retirement income.  

See all the current deals at elevated rates by CLICKING HERE.

Investors in DCF Income Payments know that there is no greater currency for long term stability than the US dollar, and these astute investors also know  they can rely on the top-rated carriers that back these structured settlement payment streams for decades into the future, despite current government instability.  

Taking the long view, now is a great time to buy into long term safe income assets.  

Laissez Les Bon Temps Roulez!