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Wednesday, October 17, 2018 |
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MANAGING DIRECTOR: |
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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 |
| 10/10/18 | 2.18 | 2.27 | 2.45 | 2.67 | 2.88 | 2.97 | 3.05 | 3.15 | 3.22 | 3.33 | 3.39 |
| 10/11/18 | 2.14 | 2.27 | 2.44 | 2.66 | 2.85 | 2.94 | 3.00 | 3.09 | 3.14 | 3.25 | 3.32 |
| 10/12/18 | 2.14 | 2.28 | 2.44 | 2.66 | 2.85 | 2.93 | 3.00 | 3.09 | 3.15 | 3.25 | 3.32 |
| 10/15/18 | 2.17 | 2.31 | 2.47 | 2.67 | 2.85 | 2.94 | 3.01 | 3.10 | 3.16 | 3.27 | 3.34 |
| 10/16/18 | 2.19 | 2.30 | 2.46 | 2.66 | 2.87 | 2.95 | 3.02 | 3.10 | 3.16 | 3.26 | 3.32 |
Source: U.S. Department of the Treasury, as of 10/16/2018
Consider Taxable Municipals
Taxable municipal bonds offer spread above treasuries at all maturities across the yield curve. However, spreads really widen in maturities out longer than 2 years. These bonds are typically taxable on the federal level and then tax exempt for investors within the same state.
There is often additional opportunities for investors if they invest in out of state credits. Many times there can be additional offerings, higher credit quality or additional yield provided to investors that are flexible on state the bond is issued. For example, if you are investing in the Sioux City SD Taxable shown below and you are not a Wisconsin investor you could still pick up 65bps of spread above treasuries (7yr yielding 3.10) at a 5% state tax rate.
Source: Bloomberg
Widening your investment criteria can often times provide additional investment opportunities and benefit your portfolio in the long- run. Call your CCB representative for a full listing of taxable offerings.
Taxable municipal bonds offer spread above treasuries at all maturities across the yield curve. However, spreads really widen in maturities out longer than 2 years. These bonds are typically taxable on the federal level and then tax exempt for investors within the same state.
There is often additional opportunities for investors if they invest in out of state credits. Many times there can be additional offerings, higher credit quality or additional yield provided to investors that are flexible on state the bond is issued. For example, if you are investing in the Sioux City SD Taxable shown below and you are not a Wisconsin investor you could still pick up 65bps of spread above treasuries (7yr yielding 3.10) at a 5% state tax rate.
Source: Bloomberg
Widening your investment criteria can often times provide additional investment opportunities and benefit your portfolio in the long- run. Call your CCB representative for a full listing of taxable offerings.
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