| Wednesday, October 11, 2017 | ||||||||
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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 |
| 10/03/17 | 1.01 | 1.07 | 1.21 | 1.32 | 1.47 | 1.62 | 1.92 | 2.15 | 2.33 | 2.63 | 2.87 |
| 10/04/17 | 1.00 | 1.08 | 1.21 | 1.33 | 1.47 | 1.62 | 1.92 | 2.15 | 2.33 | 2.64 | 2.87 |
| 10/05/17 | 1.02 | 1.07 | 1.21 | 1.35 | 1.49 | 1.63 | 1.94 | 2.17 | 2.35 | 2.65 | 2.89 |
| 10/06/17 | 1.03 | 1.07 | 1.22 | 1.35 | 1.54 | 1.66 | 1.97 | 2.20 | 2.37 | 2.68 | 2.91 |
| 10/10/17 | 1.03 | 1.08 | 1.26 | 1.42 | 1.51 | 1.64 | 1.95 | 2.18 | 2.35 | 2.65 | 2.88 |
Source: U.S. Department of the Treasury, as of 10/10/17
Value in an “Oversold” Bond Market
An “oversold” bond market is defined, in its simplest terms, as a market that has more sellers than buyers. Over the past six months, the five year Treasury note has experienced three of these markets – early May, early July and early October … where we find ourselves today.
Each time, as evidenced by the graph below, the five year Treasury has approached that magical 2.00% yield level, buyers kick in and yields are driven lower for months going forward until they finally land at substantially more expensive thresholds (1.72% in early June and 1.63% in early September).
Currently the five year yields 1.94%. We recommend keeping an eye on the 2.00% level and consider buying it if it gets there. Given earlier trends, chances are you will love it for months to come.
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