CD rates are declining today as concern over the European debt crisis worsens and bleak economic data is being released on the world economies. Interest rates and bank CD rates are lower on concerns the debt in European countries is going to hit other countries besides Greece. 

Current 10 year bond yields are at 3.10 percent and current 1 month CD rates are at 0.30 percent. Investors sent stocks prices lower on the debt crises and a lower Euro. Just this past Friday, Greece’s debt was downgraded yet again and future into junk status.

Other countries that might get dragged into the debt crisis include Spain and Italy believe it or not. Their debt is looking precarious and could send the Euro down more forcing interest rates higher. This will cause U.S. bond yields to go lower as investors move money into U.S. Treasuries.

Don’t expect CD rates at banks to move higher this year. The best CD rates on 12 month certificates of deposit aren’t that hight today. Interest rates will continue to move slightly lower as inflation becomes less and less a concern.