A bottom is forming for the Monthly Treasury Index — but possibly not before it drops a few more basis points and breaks a few more records.
The MTA was a record-low 0.44083 percent last month, based on data published by the Federal Reserve. The index fell from 0.46333 percent in January after slipping less than 1 basis point from December.
During February 2009, the index was 1.51333 percent.
The MTA reflects the daily average yield on the one-year Treasury for each of the past 12 months. The one-year yield averaged 0.35 percent in February, unchanged from January.
Given that the daily average continues to remains near current levels over each of the coming months, the MTA could see a decline of around 10 BPS before reversing course and heading higher.
The yield on the one-year Treasury finished February at 0.32 percent, edging up from 0.30 percent at the end of January, according to U.S. Department of the Treasury data. The one-year yield closed today at 0.32 percent.
