| Tuesday, September 12, 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 |
| 9/5/17 | 1.30 | 1.03 | 1.13 | 1.23 | 1.30 | 1.40 | 1.65 | 1.90 | 2.07 | 2.43 | 2.69 |
| 9/6/17 | 1.04 | 1.07 | 1.17 | 1.24 | 1.30 | 1.42 | 1.69 | 1.93 | 2.10 | 2.46 | 2.72 |
| 9/7/17 | .98 | 1.05 | 1.15 | 1.21 | 1.27 | 1.38 | 1.63 | 1.88 | 2.05 | 2.40 | 2.66 |
| 9/8/17 | .96 | 1.04 | 1.14 | 1.22 | 1.27 | 1.39 | 1.64 | 1.89 | 2.06 | 2.41 | 2.67 |
| 9/11/17 | .97 | 1.05 | 1.16 | 1.24 | 1.32 | 1.44 | 1.71 | 1.96 | 2.14 | 2.49 | 2.75 |
Source: U.S. Department of the Treasury, as of 9/11/17
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Using Current Rates To Your Advantage…
We received many calls in early April this year as portfolio managers reviewed the gain/loss in their investment portfolios for the month ending March 31st. Most wanted to know if this was a mistake…
It was not. The 10-year treasury hit 2.62% on March 13th, pushing many investment portfolios “under water”! In short, book value was below current market value. There was a lot of anguish, even though the portfolios were still well reasoned and contained sound securities. And, in the big picture, it was not really a big deal.
Today the 10-year treasury is just above 2%. No one for sure knows where rates are headed, but we do believe that if you have identified specific securities that you considered “undesirable” now might be a good time to assess selling them. And, if it is a part of your game plan, “take profits”. Or, take gains to pair losses in other securities sold. It is a good time to get even if you think rates are headed back up.
And believe it or not, we believe it is still a good time to buy out on the curve if you are flush with funds and need to fill in or add to your investment ladder or barbell. Time will tell, but it seems like everyone believes this latest rate dip is temporary, and the 10-year treasury will likely be back to 2.30% in no time. It might be, but it is not a sure thing.
In short, current rates have given everyone who hated the days of the 10-year at 2.62% a second chance. Make the most of it.
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