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Thursday, May 24, 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 |
| 5/17/18 | 1.70 | 1.92 | 2.10 | 2.32 | 2.57 | 2.75 | 2.94 | 3.07 | 3.11 | 3.19 | 3.25 |
| 5/18/18 | 1.68 | 1.91 | 2.09 | 2.32 | 2.55 | 2.71 | 2.90 | 3.02 | 3.06 | 3.14 | 3.20 |
| 5/21/18 | 1.71 | 1.93 | 2.14 | 2.35 | 2.58 | 2.73 | 2.90 | 3.02 | 3.06 | 3.13 | 3.20 |
| 5/22/18 | 1.73 | 1.93 | 2.13 | 2.34 | 2.59 | 2.73 | 2.90 | 3.02 | 3.06 | 3.14 | 3.21 |
| 5/23/18 | 1.76 | 1.92 | 2.11 | 2.29 | 2.53 | 2.67 | 2.83 | 2.95 | 3.01 | 3.09 | 3.17 |
Source: U.S. Department of the Treasury, as of 05/23/18
Muni Bonds: The Lost Chapter of Life On The Mississippi
In May 1897 Mark Twain was in London on a speaking tour. While there, a rumor spread that he was gravely ill. That rumor was followed by a second, more outlandish rumor that he actually died. It seems this “fake news” was picked up by an American paper which prepared his obituary. When Twain was told of this he quipped “The report of my death has been greatly exaggerated.”
Perhaps if Twain were living today he’d be compelled to repeat his quip as it pertains to municipal bonds. In the immediate aftermath of President Donald Trump’s election, municipal bonds declined in price due to concerns that any Trump tax reform would render munis irrelevant and otherwise unattractive. Of course with the benefit of perfectly focused hindsight, investors realized the post-election conniption was an exaggeration as well. Pre and post tax reform, Muni bonds are in demand and deliver favorable total return and taxable equivalent yield properties. The 2018 Tax Cut and Jobs Act (TCJA) has not erased municipal bonds from investors’ preferred securities catalog. To the contrary, TCJA’s elimination of certain deductions has sparked demand for this time-tested asset class.
So don’t wait. Attractive municipal securities are offered, available and may be just what you’re looking for. Unlike the weather, of which Mark Twain said everyone complains but does nothing about, this is something you can fix right now.
Please call your CCB Capital Markets Rep for a full offering of top quality muni bonds and further discussion.
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