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| May 2004 was the last time that the Monthly Treasury Average has been this low.MTA fell to 1.33917% during April, according to data released today by the Federal Reserve.
The index fell from 1.43833% in March and 3.52833% during April 2008. The last time MTA was this low was when it stood at 1.28830% in May 2004 — about the time Washington Mutual was peaking with its production of option ARMs that utilized MTA as the underlying index. MTA is calculated by first determining the average yield on the one-year Treasury for the most recent month. That month is then averaged with the prior 11 to determine the current index level. During April, the average daily yield on the one-year Treasury was 0.55%. The nearly 89 basis point disparity between the MTA and April’s daily average reflects the steady decline that has occurred since June 2008 — when the one-year Treasury averaged 2.42%. The yield on the one-year Treasury closed today at 0.52%. |
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