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Thursday, November 15, 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 |
| 11/7/18 | 2.23 | 2.37 | 2.51 | 2.74 | 2.96 | 3.03 | 3.07 | 3.15 | 3.22 | 3.35 | 3.43 |
| 11/8/18 | 2.21 | 2.35 | 2.52 | 2.74 | 2.98 | 3.05 | 3.09 | 3.17 | 3.24 | 3.36 | 3.43 |
| 11/9/18 | 2.21 | 2.36 | 2.52 | 2.73 | 2.94 | 3.01 | 3.05 | 3.13 | 3.19 | 3.32 | 3.40 |
| 11/13/18 | 2.24 | 2.38 | 2.53 | 2.72 | 2.89 | 2.95 | 2.99 | 3.07 | 3.14 | 3.28 | 3.36 |
| 11/14/18 | 2.24 | 2.38 | 2.52 | 2.71 | 2.86 | 2.92 | 2.95 | 3.04 | 3.12 | 3.26 | 3.35 |
Source: U.S. Department of the Treasury, as of 11/14/2018
Year End Checklist: Finish Up a Good Year and Make 2019 Stronger
If earnings have been good this year, it may be the right time to book losses in your bond portfolio. This is the first year in many when bond losses are prevalent. This creates an opportunity. The idea is to sell lower yielding bonds at a loss which is partially underwritten by the IRS and clean up some areas of the portfolio to either reduce interest rate risk or to reallocate into better performing assets.
If earnings are not so good, it’s a little tougher but there’s still an opportunity. If you still have any bond gains, consider realizing them. These can be used to meet budget goals, replenish diminished reserve accounts or to restructure the portfolio for better long term income. Or, since the year is already sub-par, take more losses, reinvest in higher yielding assets and, thereby, push income into forward years.
Either way, time is running short for this year-end portfolio pruning. The next three weeks will be your best opportunity to bid securities you are looking to sell. Beginning next week, the holiday season is in full bloom and with every passing day the marketplace of dealers grows reluctant to significantly add to inventories before year end.
Take a minute to review your portfolios to ensure that you are not missing out on any of these year-end opportunities…we can help with specific recommendations….time is running short!
If earnings have been good this year, it may be the right time to book losses in your bond portfolio. This is the first year in many when bond losses are prevalent. This creates an opportunity. The idea is to sell lower yielding bonds at a loss which is partially underwritten by the IRS and clean up some areas of the portfolio to either reduce interest rate risk or to reallocate into better performing assets.
If earnings are not so good, it’s a little tougher but there’s still an opportunity. If you still have any bond gains, consider realizing them. These can be used to meet budget goals, replenish diminished reserve accounts or to restructure the portfolio for better long term income. Or, since the year is already sub-par, take more losses, reinvest in higher yielding assets and, thereby, push income into forward years.
Either way, time is running short for this year-end portfolio pruning. The next three weeks will be your best opportunity to bid securities you are looking to sell. Beginning next week, the holiday season is in full bloom and with every passing day the marketplace of dealers grows reluctant to significantly add to inventories before year end.
Take a minute to review your portfolios to ensure that you are not missing out on any of these year-end opportunities…we can help with specific recommendations….time is running short!
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