FIA Market Briefing

What this means for FIA rates: The 10-year Treasury held essentially flat at 4.64% this week with volatility contained, so FIA options budgets are unlikely to shift meaningfully in the near term. The yield curve is normal (+94 bps), a healthy sign for insurer long-term portfolio returns.

Rates likely holding steady. No major pressure in either direction — yields are flat and options costs are contained. The 10-year moved from 4.67% to 4.64% over the week, and VIX went from 15.15 to 14.53. The yield curve is positive (94bps spread) — a healthy sign for insurer portfolio returns. Status quo environment. Current rate offerings should remain stable in the near term.

• →Rate environment is stable — a good window to review existing FIA positions and consider reallocation.
• →Equities are flat — a natural moment to discuss how FIAs offer a more predictable path for retirement income vs. direct market exposure.
• →Index performance is diverging (Russell 2000 up 1.11%, NASDAQ up 1.67%) — worth discussing which FIA index crediting strategy best fits each client's outlook.
• →With the 10-year at 4.64%, fixed-rate alternatives look competitive. Be ready to explain how FIA participation in market upside differentiates them from straight fixed annuities.