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Tuesday, July 3, 2018

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 • Gus Koppen

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
6/26/18 1.79 1.93 2.14 2.33 2.53 2.63 2.75 2.84 2.88 2.95 3.03
6/27/18 1.79 1.93 2.10 2.33 2.52 2.59 2.71 2.79 2.83 2.90 2.97
6/28/18 1.76 1.93 2.11 2.33 2.52 2.60 2.73 2.81 2.84 2.91 2.97
6/29/18 1.77 1.93 2.11 2.33 2.52 2.63 2.73 2.81 2.85 2.91 2.98
7/02/18 1.90 1.98 2.14 2.34 2.57 2.65 2.75 2.83 2.87 2.92 2.99

                                                                                      Source: U.S. Department of the Treasury, as of 07/02/2018 


                                                      More Fodder for the Fed …
 
It’s July and temperatures are soaring all across the country.

Speaking of hot, the Purchasing Manger’s Index is expanding at the highest levels we’ve seen over the past 24 years (see the ISM Manufacturing charted below).  Additionally, the Atlanta Federal Reserve Bank is forecasting GDP expansion in the 2nd quarter at more than 4%, or more than twice the pace of economic growth in the 1st quarter.

Despite all the trepidation related to tariffs and trade, most indications seem to confirm an underlying economic momentum and therefore, bolster the case for further increases in short term rates.

Accordingly, most commercial bankers are expecting their cost of funds will continue to climb.  Given this expectation, many bankers are exploring alternative funding options. Please consider the Bank Funding Market Update below and let us know if we can assist you with a discussion of your options.
 
 
                                                                                                                                                         
 

                                                                                                                                                                                                                                                                                                                 Source: Bloomberg July 2, 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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