All U.S. debt securities yield less than the Federal Reserve's target rate for overnight lending between banks!!
There will certainly be a cut in borrowing costs on the 11th - the next time that teh FED meet.
President George W. Bush today will announce a freeze on some subprime mortgages to stop a wave of foreclosures.
The London interbank offered rate, the amount banks charge each other for such loans, increased 1 basis point to 4.88 percent, the highest since December 2000, and its 17th straight day of gains. The three-month dollar Libor rate was little changed at 5.15 percent, near a seven-week high.
ARM's are usually based off of LIBOR (look above), so should your loan reach the reset period.....well, OUCH!
Bush's plan may work.....for now.