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Thursday, November 2, 2017

MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
Steve Panknin • George Morris • Jeff Goble • Chris Thompson • Sean Doherty
Robert Brickson • Kevin Doyle • Lonnie Harris •  Mark Tranckino • Robert Schuyler 
Tom Toburen • Josh Kiefer • Nicole Burczyk • Kelley Frye • Natalie Regan • Aaron Stoffer • Chuck Honeywell

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
10/26/17 .99 1.11 1.29 1.43 1.63 1.76 2.07 2.30 2.46 2.74 2.96
10/27/17 .98 1.10 1.28 1.42 1.59 1.73 2.03 2.26 2.42 2.71 2.93
10/30/17 .97 1.12 1.24 1.42 1.58 1.71 2.00 2.22 2.37 2.66 2.88
10/31/17 .99 1.15 1.28 1.43 1.60 1.73 2.01 2.23 2.38 2.66 2.88
11/1/17 1.06 1.18 1.30 1.46 1.61 1.74 2.01 2.22 2.37 2.63 2.85

                                                                                                               

                                                                                                                Source: U.S. Department of the Treasury, as of 11/1/17   
 

Interest Rates Rising Overseas and Trump is Set to Nominate Powell as the Next Fed Chair

 

The Bank of England voted to raise rates for the first time in over a decade by 0.25% on a 7-2 vote. In spite of the fact that their economy is barely moving (3rd quarter GDP @ 0.4%) and with Brexit still playing out in unforeseen ways.

 

President Trump is expected to nominate Jerome Powell as the next Fed Chair at 3:00 pm EDT this afternoon. This had been widely anticipated and is expected to be a positive for the markets as he is not expected to make significant changes to Fed policy in the near future.

 

Treasuries are higher this morning, with the 5Y up 2/32’s and the 10y up 4/32’s. This is still a very good time to own bonds as the Regression analysis shows that rates are very close to +2 standard deviations from the mean:
 

If you are looking for short liquid assets to park some funds this 3y Bullet we underwrote yesterday is a great option.

FHLB 3Y Bullet
1.75% due 11/6/2020           
Settles: 11/6/2017 or later
Price: 100

We underwrote $21MM of this issue, and we have a little more than $7MM remaining.

If this is something that will work for your portfolio, give us a call.

As always, thank you for your continued confidence in the Capital Markets Group.



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