While the Monthly Treasury Average managed a new record low, its free-falling days are numbered.
The MTA was 0.31833 percent in December, based on an analysis of Federal Reserve data. A month earlier the index was 0.32500 percent.
In the same month during 2009, MTA was 0.47083 percent.
A review of Fed data back to April 1953 reveals that this is the lowest level for the MTA on record.
The MTA is determined by calculating a daily average of the one-year Treasury yield for each of the last 12 months. The daily average for the month of December was 0.29 percent, higher than November’s 0.25 percent and up for the second consecutive month.
Then, an average of the 12 months is calculated to determine the latest index.
The MTAÂ will likely see a couple more record lows before moving higher.
The one-year Treasury yield, itself, finished 2010 at 0.29 percent, edging up from 0.27 percent at the end of November.
