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Thursday, October 25, 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 |
| 10/18/18 | 2.19 | 2.32 | 2.47 | 2.67 | 2.87 | 2.95 | 3.03 | 3.11 | 3.17 | 3.28 | 3.36 |
| 10/19/18 | 2.19 | 2.31 | 2.48 | 2.67 | 2.92 | 2.99 | 3.05 | 3.14 | 3.20 | 3.31 | 3.38 |
| 10/22/18 | 2.18 | 2.34 | 2.49 | 2.68 | 2.92 | 2.99 | 3.05 | 3.13 | 3.20 | 3.31 | 3.38 |
| 10/23/18 | 2.21 | 2.33 | 2.48 | 2.67 | 2.89 | 2.95 | 3.01 | 3.10 | 3.17 | 3.29 | 3.37 |
| 10/24/18 | 2.20 | 2.34 | 2.47 | 2.64 | 2.84 | 2.89 | 2.94 | 3.02 | 3.10 | 3.24 | 3.33 |
Source: U.S. Department of the Treasury, as of 10/24/2018
How about you tell us what you need?
Although the expectation is we make recommendations to you since we live and breathe bonds, today we wanted to open it up to you. In case you were not aware, Country Club Bank Capital Markets Group is an active underwriter for FHLB. Because of our size we are often able to cater to the needs of the financial institutions we work with and underwrite what you tell us you need and not tell you what we think you need.
We are near 7-10 year highs in yield across the curve. I would like to encourage you to identify holes in your cash flow ladder and let us know what types of structures would work best for your portfolio. We would strongly encourage lessor optionality like a 1X call or bullet. As for maturity and call, that is what we would like to hear from you.
If you have liquidity to put to work, let us know what kind of calls/maturity would work best for your portfolio. If we have enough institutions looking for a similar structure we can entertain underwriting the issue. One structure that currently stands out is a 5YR 2YR 1X. We have been told that this can currently be priced at 3.30%.
Please let your CCB Rep know if this would work in your portfolio or if there is another structure that may work better, any and all feedback is encouraged and welcomed.
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