The Monthly Treasury Average eaked out another decline and will likely continue to do so for the next several months.
The index came in at 0.42083 percent during March, based on data from the Federal Reserve.
A month earlier, the MTA was 0.44083 percent, while it stood at 1.43833 percent in March 2009.
The MTA is computed by determining the daily average yield of the one-year Treasury bill for each of the prior 12 months, then averaging all 12 months. For March, the daily average yield on the one-year Treasury was 0.40 percent, higher than 0.35 percent the previous month and suggesting an eventual end to MTA’s winning streak.
But an analysis of one-year Treasury data indicates that unless short-term rates spike, the MTA is likely to continue declining for the next four or so months.
The yield on the one-year Treasury itself finished March at 0.41 percent, up from 0.32 percent at the end of February. The one-year yield closed Friday at 0.46 percent.
