The current situation in Ukraine’s Crimean peninsula has helped force a flight to safety, which has lowered the yields on most United States Treasury bills and bonds. Thus, the 10-year Treasury note yield has hit a low of 2.592% with the 30-year bond yield falling to 3.554% and the 5-year note yield sinking to 1.458%.
What this means is that interests rates are again lowering, which helps you with your borrowing costs and even with the bond costs. Lower interest rates filter throughout the system and, thus, the costs of surety bonds are likely to follow.
Further, any risk analysis of your company includes a discount rate when figuring out your cash flow. The lower the discount rate (which is pegged using long-term bond rates) will raise the current net present value of your business.
This is all good news for your business. Better financing is available and cheaper than ever.
Treasurys (30-year bond rates) rally
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