Click Here to Print


Wednesday, February 20, 2019
 
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
 

US Treasury Market
Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
02/12/19 2.42 2.43 2.50 2.55 2.50 2.48 2.49 2.58 2.68 2.87 3.02
02/13/19 2.42 2.44 2.51 2.55 2.53 2.52 2.53 2.61 2.71 2.89 3.04
02/14/19 2.45 2.43 2.51 2.53 2.50 2.48 2.48 2.56 2.66 2.85 3.01
02/15/19 2.43 2.43 2.50 2.55 2.52 2.50 2.49 2.57 2.66 2.84 3.00
02/19/19 2.44 2.45 2.52 2.54 2.50 2.47 2.47 2.55 2.65 2.84 2.99
                                                                                                                                       Source: U.S. Department of the Treasury, as of 02/19/2019
                                                                                                                                                              
THE YIELD CURVE SPEAKS (but are investors listening?)
 
We make frequent references to the yield curve.  It’s a good predictor of the direction of interest rates (ie: upward sloping means rates tend to move higher; flat to inverted and rates tend to move lower).
 
Have you noticed?
  • How much rates have risen since since mid 2016 when the curve was much steeper?
  • The current slight inversion from 2yrs to 5yrs? 
 
The “Animal Spirits” are at work and broadcasting important clues for those who wish to see them.
 
For a brief visual illustration of yield curve migration since 1990 view the attached movie clip.  You’ll see the yield curve’s predictive properties are genuine. 

DAILY TREASURY YIELD CURVE RATE 1990-2018
      
Please call your CCB Capital Markets representative for further discussion and bond portfolio strategy.
                                                  
 
                                                                                                                                                                   Source:  Bloomberg 02/20/19


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