It was another record low for the Monthly Treasury Average — which might see a few more records during the first-half 2010.
The index was 0.47083 percent during December, based on Federal Reserve data.
In November, MTA was 0.48083 percent, while it stood at 1.82167 percent in December 2008.
The index is determined by first averaging the daily yield on the one-year Treasury for each of the past 12 months. The average of all 12 months is the MTA.
Last month, the daily average for the one-year yield was 0.37 percent, higher than 0.31 percent in November.
Yesterday, the one-year Treasury yield closed at 0.45 percent. Like the MTA, the one-year is also used as an index to determine whether adjustable-rate mortgages will rise or fall. It finished December at 0.47 percent, soaring from 0.27 percent at the end of November and higher than 0.37 percent at the end of 2008.
Based on recent one-year activity, the MTA might creep higher this month, then retreat to new record lows during the following few months before turning higher.
