Treasury Yields Rising, Annuity Rates Soon to Follow

One of the main indicators that drive how annuity companies price their products has seen a significant increase lately.  The 10-yr yield increasing to 2.02%, the highest since April 2012.  That’s up from a low 1.39% in July 24th of last year.  US treasuries are not what most insurers purchase to price their products, corporate bonds are.  However, treasuries are a leading indicator of corporate bonds rates and have also seen an average increase of 10-20%.

 

http://www.bloomberg.com/news/2013-02-02/treasury-yields-rise-to-highest-since-april-as-u-s-adds-jobs.html

 

http://www.bloomberg.com/markets/rates-bonds/corporate-bonds/

 

If this trend holds, this should allow many carriers to increase rates on their current annuity products.  And may even give some the flexibilty to bring new products to the market place.

ATT Rate Button

Tags: Annuity Rates Soon to Follow, annuity scams and interest rates index annuity, corporate bonds rates and annuities, how do insurance companies price annuity products, index annuity caps and bond rates, index annuity caps and treasury yields, treasury yields and annuities, Treasury Yields Rising, why are my annuity rates decreasing, why are my annuity rates increasing

  • Delicious
  • Facebook
  • Digg
  • Reddit
  • StumbleUpon
  • Twitter
  • RSS Feed

One Response to “Treasury Yields Rising, Annuity Rates Soon to Follow”

  1. Noman Uz Zaman March 6, 2013 at 4:17 pm #

    That's a great news I think after a long time we can see some changes in annuity rates.

    http://www.annuitymarketplace.co.uk/

Leave a Reply