| Friday, October 27, 2017 | ||||||||
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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 |
| 10/19/17 | .99 | 1.10 | 1.25 | 1.41 | 1.58 | 1.69 | 1.98 | 2.18 | 2.33 | 2.60 | 2.83 |
| 10/20/17 | .99 | 1.11 | 1.27 | 1.43 | 1.60 | 1.72 | 2.03 | 2.24 | 2.39 | 2.67 | 2.89 |
| 10/23/17 | 1.00 | 1.09 | 1.25 | 1.42 | 1.58 | 1.70 | 2.01 | 2.22 | 2.38 | 2.66 | 2.89 |
| 10/24/17 | 1.00 | 1.12 | 1.27 | 1.43 | 1.60 | 1.73 | 2.05 | 2.26 | 2.42 | 2.70 | 2.92 |
| 10/25/17 | 1.01 | 1.12 | 1.27 | 1.43 | 1.61 | 1.74 | 2.06 | 2.28 | 2.44 | 2.72 | 2.95 |
| 10/26/17 | .99 | 1.11 | 1.29 | 1.43 | 1.63 | 1.76 | 2.07 | 2.30 | 2.46 | 2.74 | 2.96 |
Source: U.S. Department of the Treasury, as of 10/26/17
2017 Coming to an End
Two thousand seventeen is quickly coming to an end. This year has been filled with more market change than what we have recently become accustom too. The Fed has increased the target rate twice this year and appears poised for one more hike. The 10-year Treasury hit 2.63 percent early in the year only to decline to 2.04 percent early in September. Currently the 10-year rate is back up over the current annual average of 2.316 percent. The chart below illustrates the year-to-date chart of the 10-year, which shows how much volatility we have seen in the last 10 months. In addition to what has happened so far, the outlook for additional fluctuation in the market appears probable.
Source: Bloomberg 10/26/2017
The House of Representatives recently passed the budget, paving the way for “some sort” of tax reform. The significance of this is that it should apply additional pressure on inflation, which should lift the long end of the yield curve. Should the economy continue this expansionary trend, you will likely continue to see the Fed gradually increasing the target rate and “normalize” the balance sheet.
All of this information, in addition to other factors not mentioned, are important this time of year to consider as you begin to prepare your 2018 budget. Managing volatility is what makes banking fun and sets the top performers apart. Having the right tools and information tend to help top performers make better decisions. Let us know how we can help with our budgeting tools and market information to assist in making you a top performer in 2018.
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.
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