Weekly Treasury Outlook: One-Month Forward Yields Fall to 5.91%

In the latest weekly treasury outlook dated August 1, the one-month forward treasury yields experienced a decline, dropping to 5.91%, marking a significant movement in short-term interest rate expectations. As detailed in Professor Robert Jarrow's publication, forward rates incorporate a risk premium that exceeds market projections for the three-month forward rate. Our analysis visualizes this premium through a graph illustrating zero-coupon yields. For investors interested in evaluating corporate bond value adjusted for risk in the U.S. market, a complimentary trial of The Corporate Bond Investor is available. The platform provides insights into arbitraging longstanding credit ratings using advanced default probability data from Kamakura Corporation. Subscribers also learn to project liquidity needs accurately and rank bonds based on reward-to-risk metrics, ensuring informed investment decisions.