Investment Watch

The recent surge in long-term bond yields caused by the stronger-than-expected economy is pleasing at least one investor constituency: savers with money in the bank. Bradshaw Financial Network, which surveys CD yields, says the average one-year CD yield at Southland banks and savings and loans inched up to 5%.

Yields had been slowly edging down this year in tandem with the Federal Reserve Board’s cuts in its official short-term interest rates. Now, even though the Fed isn’t likely to raise short rates soon, banks appear to be taking a cue from bond yields. “The downward spiral in CD yields has been broken,” Martin Bradshaw of Bradshaw Financial says.”

CD survey, D2.