Why interest rate risk is on the rise

Look at the rising rate being offered to purchasers  of the ten year treasury bond since November 8t,h 2016 and it’s clear that, far from triggering a flight to safety as  prognosticators predicted, many investors expect the economy to get an immediate and positive jolt from the Trump presidency.  You see a similar trend with the Dow Jones Industrial Average.

What’s going on is the first direct impact that Donald Trump’s presidency is having on your credit union. A good argument can be made that these rising rates reflect, in part, early speculation about the size and scope of a fiscal stimulus the likes of which this country hasn’t seen since, at least, the early eighties. It’s time to start  dusting off all those NCUA warnings about interest rate risk.

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