The first generation product to obtain acceptance was adjustable rate preferred stock, a security with a dividend rate that is adjusted quarterly to reflect changes in
money market yields.
However, some research analysts say
money market yields and government borrowing may force the central bank to enhance the key rate but growing consensus us it may decide to maintain the policy rate.
Many larger and well-capitalized credit unions are reporting very strong deposit inflows, but those with low capital levels are discouraging deposits by lowering CD and
money market yields, CUNA Mutual said.
The ten largest banks, a larger proportion of whose loans are repriced in relation to
money market yields rather than the prime rate, faced the steepest decline in the average loan rate--about 180 basis points.
Depository institutions are likely to continue reducing their rates on retail deposits in lagged response to the steep declines in
money market yields before year-end.
Before the elections, Japanese short- and long-term
money market yields had been rising slowly in the expectation that an increase in the Bank of Japan's discount rate would be announced soon afterward.
money market yields and their associated currency movements.
money market yields and their associated currency movements through a fully transparent, low fee ETF structure," said Bruce Lavine, WisdomTree President & COO.
With billions in assets, they offer CD and
Money Market yields that consistently exceed the national averages, according to a recent survey of financial institutions by BanxQuote.
e-Savings Advantages -- Low minimum balance to open -- Most are free of monthly maintenance fees -- Make deposits or withdrawals from your bank's checking account -- Most offer free ATM withdrawals with surcharge rebates -- Highly comparable rates to
money market yields CD Disadvantages -- Higher minimum balance to open -- No fees but early withdrawal penalties can apply -- Standard CDs are locked-in for the term, no additions or withdrawals allowed -- No ATM access -- Higher yields require a longer investment period
He notes that they currently are yielding approximately 4 percent versus
money market yields, which are hovering below 1 percent.
Meanwhile, despite the tightening of
money market yields, 10-year bond yields are close to the lows reached during the Asia crisis, offering corporate issuers an opportunistic window for lengthening maturities.
