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  4. 3-Month CD's rate VS a 1-Year CD In A Steady Rate Period?

3-Month CD's rate VS a 1-Year CD In A Steady Rate Period?

racecar
  |     |   616 posts since 2014

Say that 1-2 years from now, 12-month CDs are paying 3.60%, and rates are steady.

Using that scenario, if 12-month CDs are 3.60%, what rate do you think a 3-month CD would have?

I never bothered with short-term CDs in the past, so I don't know how they used to compare to 1yr ones back when rates were steady.

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MoneyMoves
  |     |   149 posts since 2019
Scroll down to see chart
Average 3-Month CD Rates: 1980 through 2023
Perhaps read all of the article for full info for your concern

https://www.marketwatch.com/guides/cds/historical-cd-rates/#:~:text=The%20average%20three%2Dmonth%20CD,actions%20and%20individual%20bank%20priorities.
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w00d00w
  |     |   360 posts since 2012
the treasury yield curve is going to revert to a usual rather than inverted configuration at some point in the future. it's anyone's guess how low the Fed will need to drop the Fed funds rate for that to happen. their current estimate of how low they'll end up going (terminal rate) is 2.9%
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3


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