Thursday, January 17, 2019 |
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| MANAGING DIRECTOR: Scott Carrithers PORTFOLIO SALES AND SERVICE: Steve Panknin • George Morris • Jeff Goble • Chris Thompson • Sean Doherty Kevin Doyle • Lonnie Harris • Mark Tranckino • Robert Schuyler • Tom Toburen • Josh Kiefer Nicole Burczyk • Kelley Frye • Natalie Regan • Aaron Stoffer • Chuck Honeywell • Gus Koppen |
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US Treasury Market |
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| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 01/10/19 | 2.42 | 2.43 | 2.51 | 2.59 | 2.56 | 2.54 | 2.56 | 2.63 | 2.74 | 2.92 | 3.06 |
| 01/11/19 | 2.41 | 2.43 | 2.50 | 2.58 | 2.55 | 2.51 | 2.52 | 2.60 | 2.71 | 2.90 | 3.04 |
| 01/14/19 | 2.42 | 2.45 | 2.52 | 2.57 | 2.53 | 2.51 | 2.53 | 2.60 | 2.71 | 2.91 | 3.06 |
| 01/15/19 | 2.41 | 2.45 | 2.52 | 2.57 | 2.53 | 2.51 | 2.53 | 2.61 | 2.72 | 2.92 | 3.08 |
| 01/16/19 | 2.41 | 2.43 | 2.49 | 2.57 | 2.55 | 2.53 | 2.54 | 2.62 | 2.73 | 2.92 | 3.07 |
Source: U.S. Department of the Treasury, as of 01/16/2019
Taxable Municipals: A Sector with Value
The U.S. Treasury yield curve is still showing signs of inversion and this continues to dominate the financial news. A focused institutional investor knows there are additional fixed income sectors receiving less publicity. A particular sector offering continued value are taxable municipal bonds.
For example, the State of Texas General Obligation Taxable 3.952% due 10/01/2037 with a callable structure beginning in 2028. The credit rating is Aaa by Moody’s and AAA by S&P.
The yield to the first call, “yield to worst”, is currently 3.75%, +103 bp to the Treasury, while the yield to maturity (YTM) is currently 3.829%, +96 bp to the Treasury.
The description and yield analysis screens are below.
Description
Source: Bloomberg 01/16/19
Yield Analysis
Source: Bloomberg 01/16/19
Taxable municipal bonds may add additional yield and diversification to your portfolio.
Please contact your CCB CMG representative for details on the current availability of taxable municipals.
Please contact your CCB CMG representative for details on the current availability of taxable municipals.
This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.
•Not FDIC Insured •No Bank Guarantee •May Lose Value