By Catherine Lackner
Week of Thursday, June 27, 2019
As bond interest rates on 10 year Treasury notes slide lower amid economic and political uncertainty, what are the ramifications for the Miami business community? In an interview with Catherine Lacker on this topic, Tony Villamil, founder and senior advisor of the Washington Economic Group (WEG) said “I don’t see a recession this year,” nor does he see a rate hike by the Federal Rserve Bank in the immediate future, he added. The central bank had scheduled several increases last year, but said last week that it might postpone them, or possibly even lower rates, if the economy appears to be faltering, according to published reports. “If you look at the financial markets in South Florida, I expect them to remain the same.” Mr. Villamil said. “There’s ample liquidity and credit availability for new construction projects. A lower 10-year yield might help with real estate, as mortgage rates are likely to remain low. But the uncertainty might mean that investors stay out of the 10-year market.” As of June 20, he said, 10-year Treasury notes were yielding 2.01% as against three-month notes, yielding 2.14%. Click here to read full article.