The CD yield premium is smaller after the increase in Treasury yields, but it's still quite attractive for the best CDs.
Not exact matches
The 7 - year Treasury
yield is 2.17 % and Andrews FCU has a special going on for a taxable 7 - year
CD at 3 % (I already picked up three of the IRA
CDs at this rate), so a
yield premium of 83 bps.
@csissoko Yes, the lust for
yield drove willingness to enter into
CDS, taking risk, receiving
premium, which led some issuance of bad mtges Apr 30, 2013
It's obvious that
CDs have done and will do better than Treasuries of the same maturity if held to maturity, since the
yield premiums have been very rich most of the time over the last 6.5 years, and currently are quite good.
Good direct
CDs seem to be the best ticket for that, considering that my average
yield premium over Treasuries of same maturity is over 1 percentage point (e.g.,
CD at 3 % if Treasury
yield at 2 %) for
CDs bought over the last 6.5 years.