| Friday, September 13, 2019 |
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|---|---|---|---|---|---|---|---|---|
| MANAGING DIRECTOR: Scott Carrithers PORTFOLIO SALES AND SERVICE: Steve Panknin • George Morris • Jeff Goble • Chris Thompson • Sean Doherty Kevin Doyle • Lonnie Harris • Mark Tranckino • Robert Schuyler • Tom Toburen • Josh Kiefer Nicole Burczyk • Kelley Frye • Natalie Regan • Aaron Stoffer • Chuck Honeywell |
| US Treasury Market | |||||||||||
| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 09/06/19 | 2.05 | 1.96 | 1.88 | 1.73 | 1.53 | 1.46 | 1.42 | 1.50 | 1.55 | 1.83 | 2.02 |
| 09/09/19 | 2.04 | 1.96 | 1.87 | 1.74 | 1.58 | 1.52 | 1.49 | 1.57 | 1.63 | 1.91 | 2.11 |
| 09/10/19 | 2.04 | 1.95 | 1.89 | 1.81 | 1.67 | 1.61 | 1.58 | 1.66 | 1.72 | 2.00 | 2.19 |
| 09/11/19 | 2.01 | 1.96 | 1.88 | 1.79 | 1.68 | 1.62 | 1.60 | 1.68 | 1.75 | 2.02 | 2.22 |
| 09/12/19 | 1.99 | 1.95 | 1.90 | 1.82 | 1.72 | 1.67 | 1.65 | 1.72 | 1.79 | 2.06 | 2.22 |
A MUNICIPAL TRADERS PERSPECTIVE
Since the end of August, municipal yields have been creeping up as the muni market confronts three market issues: reduced municipal mutual fund inflows, fading US Treasuries and more supply. Many issuers are looking to take advantage of the lower rates causing supply to outweigh the number of calls and redemptions and causing underwriters to bid a little cheaper.
The part of the municipal curve that offers the best value is 10 years and beyond where the percentages to Treasuries can get to 90%+, while “kicker” structures can offer percentages higher than 100%. Bank eligible offerings, when available, also present a great opportunity to pick up additional yield.
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