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Wednesday, October 3, 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 |
| 9/26/18 | 2.11 | 2.20 | 2.37 | 2.58 | 2.83 | 2.89 | 2.96 | 3.02 | 3.06 | 3.14 | 3.19 |
| 9/27/18 | 2.10 | 2.18 | 2.37 | 2.58 | 2.83 | 2.89 | 2.96 | 3.02 | 3.06 | 3.13 | 3.19 |
| 9/28/18 | 2.12 | 2.19 | 2.36 | 2.59 | 2.81 | 2.88 | 2.94 | 3.01 | 3.05 | 3.13 | 3.19 |
| 10/1/18 | 2.13 | 2.23 | 2.40 | 2.60 | 2.82 | 2.90 | 2.96 | 3.04 | 3.09 | 3.18 | 3.24 |
| 10/2/18 | 2.14 | 2.23 | 2.41 | 2.61 | 2.82 | 2.88 | 2.94 | 3.01 | 3.05 | 3.14 | 3.20 |
Source: U.S. Department of the Treasury, as of 10/02/2018
Best-Efforts vs. Guaranteed CD Issuance …
Yesterday’s PMR suggested financial institutions may want to get ahead of coming increases in short-term interest rates by locking-in brokered CDs at today’s rates.
Like most CD brokers, Country Club Bank in association with Financial Northeastern, assists client institutions with the issuance of brokered deposits on a “Best-Efforts” basis. As such, we make every effort to raise the entire amount of funds desired at the lowest cost the CD market will allow. Logically, less effort would be required to raise funds at a slightly higher cost compared to more competitive, lower market rates.
Some brokers offer clients “Guaranteed” CD issuance, although the guarantee is typically at a slightly higher cost, or if the rate quoted is a more competitive lower cost, the guarantee is for only a small portion of the desired amount of funds. Issuers desiring a firm commitment for CD Funding may want the guaranteed terms in writing.
Institutions planning to issue brokered deposits should compare broker quotes on an apples-to-apples basis, with a clear understanding of the “all-in” cost versus the nominal rate paid to depositors.
The Indicative CD Pricing provided below is updated on a weekly basis and represents the “all-in” cost of issuing non-callable term CDs, along with intermediate callable and step-up Certificates of Deposit. Market conditions can vary from day to day and issuers should always compare “fresh” broker quotes just prior to coming to market.
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