Greysteel Capital Markets Update | January 2020

The 10-year Treasury rate increased to 1.92% at the end of December, up 14 basis points from the previous month and its biggest monthly climb since September after the U.S. and China agreed to a “phase one” trade deal. President Donald Trump said he would sign the deal at the White House on Jan. 15 and then head to Beijing to begin negotiations on a second phase of trade discussions. According to Dow Jones Market Data, the benchmark 10-year government paper fetched an average yield of 2.40% for the 2010 decade, down from 4.45% for the 2000s, 6.67% for the 1990s and 10.59% for the 1980s. For 2020, many analysts expect rates to continue to rally amid an improving global economic outlook.

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