Article

Interest rates drive decisions: Should I save or invest? Should I rent or buy? Should I borrow or spend?

April 9, 2020 · Authored by Jeff Messer, Mike Geraty

This weekly update provides facts and figures from the capital markets that we hope you find useful. 

We begin with overnight rates and end with 30-year bond yields. We focus on the week-over-week change, highlighted in yellow. We also provide quarter-to-date and year-to-date changes for reference.

Dislocations in the municipal bond market present an investment opportunity.

• The yield on 1-year AAA municipals is currently 1.03% versus 1.07% last week. 
• The yield fell by 4 basis points.  A basis point is 1/100th of 1.00%, or 0.01%. 
• Compare that to the 0.14% yield on the 1-year Treasury bill. 

Should I invest in the municipal or the Treasury? 

We also included key foreign exchange rates, S&P 500 index, gold, crude oil, inflation expectations and real interest rates.

For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.

The information provided here is of general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances a professional should be sought. Baker Tilly Wealth Management, LLC (BTWM) is a registered investment advisor. Reference to registration does not imply any particular level of skill. BTWM does not provide tax or legal advice. BTWM is not an attorney. Estate planning can involve a complex web of tax rules and regulations. Consider consulting a tax or legal professional about your particular circumstances before implementing any tax or legal strategy. Securities, when offered and transaction advisory services are offered through Baker Tilly Capital, LLC (BTC), Member FINRA and SIPC. BTWM and BTC are affiliated entities controlled by Baker Tilly Advisory Group, LP, a tax and advisory firm, trading as Baker Tilly. Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities.