This index is the 12 month average of the monthly average yields of 3 month certificates of deposit. In plain English, this index is calculated by averaging the previous 12 rates of the 3 month CD rate. The 3 month CD rate used is the rate publish monthly by the Federal Reserve. Because this particular index is an annual average, it is more steady than straight CD rates. As you can see, rates can move rather quickly over the course of a year.
Anecdotally speaking, I've noticed that over the last month or so, Jumbo rates are moving up. As members gain more confidence in the stock market, there could be more competition for deposits that could precipitate a move towards higher rates overall.
1 comment:
While I agree with your conclusion about Jumbo CDs, the chart that you used doesn't support that. Perhaps you could use the above chart and also log the more current rates. You would then show a "break" above the moving average.
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