Dear Valued Producer,

I wanted to make sure all of you are aware of the dramatic recent changes in the financial markets, especially the bond market. The yield on the 10 year treasury has been declining for the last month but the decreases in yields have really accelerated over the past 5 days.

• On February 6, 2020 the yield on the 10 year treasury was 1.66%
• Today March 6, 2020 at 9:26am the yield on the 10 year treasury was 0.70%
• So over the last 30 days the yield on the 10 year treasury have dropped 96 bps!
• As a result investment yields on the insurance carrier’s portfolios are dropping and therefore they have lowered their new money rates and more importantly more Interest rate decreases are coming.

So I would strongly recommend that you meet with your clients and potential clients to advise them what is happening. Also encourage them to lock in the current rates now as it looks like interest rates will continue to go lower. Waiting will only end up costing them more money.

Please call us at (888) 661-1999 to discuss current annuity offerings available and upcoming interest rate decreases so you are aware of the time frames involved.

Below is a chart showing the decline in yield on the 10 year treasury over the last 30 days.

Neal Lapierre

President

The Life And Annuity Shop, LLC