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Thursday, July 26, 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 |
| 7/19/18 | 1.89 | 2.00 | 2.16 | 2.40 | 2.60 | 2.67 | 2.74 | 2.81 | 2.84 | 2.90 | 2.96 |
| 7/20/18 | 1.86 | 1.99 | 2.16 | 2.41 | 2.60 | 2.68 | 2.77 | 2.85 | 2.89 | 2.96 | 3.03 |
| 7/23/18 | 1.88 | 1.99 | 2.19 | 2.42 | 2.64 | 2.72 | 2.83 | 2.92 | 2.96 | 3.04 | 3.10 |
| 7/24/18 | 1.92 | 2.02 | 2.19 | 2.42 | 2.63 | 2.74 | 2.83 | 2.91 | 2.95 | 3.02 | 3.08 |
| 7/25/18 | 1.90 | 2.01 | 2.20 | 2.42 | 2.66 | 2.74 | 2.82 | 2.90 | 2.94 | 3.00 | 3.06 |
Source: U.S. Department of the Treasury, as of 07/25/2018
What were you doing back in 2008?
Good for you if you can remember what you were doing a decade ago. Wikipedia can remind us that in 2008 the New York Giants defeated the New England Patriots in the Super Bowl, the Phillies won the World Series, the Boston Celtics won the NBA Championship, Big Brown won the Kentucky Derby and of course everyone around here still talks about the last time the Kansas Jayhawks won the NCAA National Championship in basketball.
2008 was also the last time the 2YR Treasury was trading at our current yield levels. Go back to 2008, would you have done anything differently? I know I would have. Knowing what we know now, I would have extended some of my assets out on the curve.
There is certainly an argument for yields on the front end of the curve to continue to climb however there are many arguments piling up that would suggest differently. There are plenty of opportunities out there that would allow you to move out on the curve. Here are a few to get the conversation started. Please reach out to your CCB representative with questions about this short list or to find something that would fit your portfolio better.
2YR TREASURY YIELDS (Source: Bloomberg)
Good for you if you can remember what you were doing a decade ago. Wikipedia can remind us that in 2008 the New York Giants defeated the New England Patriots in the Super Bowl, the Phillies won the World Series, the Boston Celtics won the NBA Championship, Big Brown won the Kentucky Derby and of course everyone around here still talks about the last time the Kansas Jayhawks won the NCAA National Championship in basketball.
2008 was also the last time the 2YR Treasury was trading at our current yield levels. Go back to 2008, would you have done anything differently? I know I would have. Knowing what we know now, I would have extended some of my assets out on the curve.
There is certainly an argument for yields on the front end of the curve to continue to climb however there are many arguments piling up that would suggest differently. There are plenty of opportunities out there that would allow you to move out on the curve. Here are a few to get the conversation started. Please reach out to your CCB representative with questions about this short list or to find something that would fit your portfolio better.
- 2.75YR FHLB Bullet @ 2.77%
- 4YR 2YR 1X Call @ 3.00%
- 5YR 2YR 1X Call @ 3.10%
- New Issue 15YR Pass Thru Pool @ 3.30% to a 4.86YR average life
2YR TREASURY YIELDS (Source: Bloomberg)
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