10-YEAR TREASURY RATE TREND IS POSITIVE FOR MANUFACTURING

St. Paul, MN (November 25, 2019) — According to Steven Kline, Jr., Chief Data Officer of Gardner Business Media, the year-over-year change in the real 10-year Treasury rate was -0.77% in October, which was the 10th consecutive month the change was negative. This indicates a positive turn for manufacturing is ahead sometime in 2020.

In October, the nominal 10-year Treasury rate was 1.71%, staying under 2.00% for the third month in a row. October was the fifth month in a row in which the nominal 10-year Treasury rate averaged less than the Fed Funds Rate, which is the overnight lending rate. The 10-year Treasury rate falling below the Fed Funds rate tends to indicate a recession is ahead.

The annual rate of inflation according to the CPI was below 2.00% for the sixth month in a row 10th time in 11 months. As a result, the real 10-year Treasury rate was -0.08%. October was the fourth time in five months that the real 10-year Treasury rate was negative.

In October, the year-over-year change in the real 10-year Treasury rate was -0.77%, which was the 10th consecutive month the change was negative. Also, it was the lowest the annual change had been since December 2017.

The low and falling change in the real 10-year Treasury rate tends to be a positive signal for durable goods manufacturing. Changes in the real 10-year Treasury rate tend to lead capital equipment consumption by a relatively long period of time – historically, between 12 and 24 months. The change in the 10-year Treasury rate is a good leading indicator of housing permits, construction spending, consumer durable-goods spending, durable goods new orders, and capital equipment spending. An decreasing year-over-year change in the real 10-year Treasury rate should lead to increases in all of these data points down the line.

With such positive economic indicators, now is the time to take advantage of Matsuura’s 2019 Year End Sales Event. Customers are encouraged to contact their local Matsuura Distributor for information and availability.

  • Most Matsuura Models in Inventory Included
  • Special Financing Options Available
  • Act now to take advantage of substantial tax savings and lower your cost of ownership
  • Savings Subject to Inventory

Matsuura Machinery USA, Inc., located in St. Paul, MN is the U.S. subsidiary of Matsuura Machinery Corporation in Japan. Since 1935, Matsuura has been the forerunner in designing innovative technology and manufacturing solutions to a variety of industries around the globe. Matsuura Machinery USA, Inc. delivers unmatched excellence in 5-axis, vertical, horizontal, linear motor, multi-tasking CNC machine tools and machines with a powder bed metal AM platform with machining capability. Matsuura Machinery USA, Inc. provides the service, applications and technical field support that have always been the Matsuura standard for business.

For more information about Matsuura, please contact: [email protected]