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Friday, June 22, 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 |
| 6/15/18 | 1.82 | 1.94 | 2.07 | 2.35 | 2.55 | 2.68 | 2.81 | 2.89 | 2.93 | 2.98 | 3.05 |
| 6/18/18 | 1.84 | 1.94 | 2.13 | 2.35 | 2.56 | 2.67 | 2.80 | 2.89 | 2.92 | 2.98 | 3.05 |
| 6/19/18 | 1.85 | 1.94 | 2.13 | 2.34 | 2.54 | 2.64 | 2.77 | 2.84 | 2.89 | 2.95 | 3.02 |
| 6/20/18 | 1.85 | 1.94 | 2.14 | 2.36 | 2.56 | 2.67 | 2.80 | 2.89 | 2.93 | 2.99 | 3.06 |
| 6/21/18 | 1.85 | 1.94 | 2.12 | 2.34 | 2.56 | 2.65 | 2.77 | 2.86 | 2.90 | 2.97 | 3.04 |
Source: U.S. Department of the Treasury, as of 06/21/2018
A Municipal Traders Perspective
Haven’t thought about municipals in a while? They still make sense for bank portfolios.
Take a look at this Missouri General Obligation Tax–Free BQ
Saint Clair County S/D #R-3 (Lakeland Schools), Missouri
S&P: AA+ Missouri Direct Deposit Program
| $540,000 | 5.00% | 3-1-2033 | 2.55 ytc | 4.03 ytm |
| $1,100,000 | 5.00% | 3-1-2038 | 2.65 ytc | 4.23 ytm |
| Callable 3-1-23 |
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USTN curve is flat, the municipal curve is steep – Best relative value is beyond 10 years.
Tax-Equivalent Yield Comparison on St. Clair Co. #R-3, Missouri
| 2033 Maturity | 2038 Maturity | ||||
| 2023 YTC = 2.55 |
2033 YTM =4.03 |
2023 YTC = 2.65 |
2038 YTM =4.23 |
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| Tax Equivalent 21% bracket | 3.23 |
5.10 |
3.35 |
5.35 |
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| Spread to USTN |
+48 | +217 | +60 | +239 | |
| Tax Equivalent 30% bracket | 3.64 |
5.75 |
3.78 |
6.04 |
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| Spread to USTN |
+89 | +283 | +103 | +308 | |
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