Wednesday, September 11, 2024 |
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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 |
| 09/04/24 | 5.19 | 5.08 | 4.77 | 4.21 | 3.75 | 3.63 | 3.55 | 3.64 | 3.76 | 4.14 | 4.06 |
| 09/05/24 | 5.15 | 5.07 | 4.75 | 4.20 | 3.74 | 3.61 | 3.54 | 3.63 | 3.73 | 4.11 | 4.02 |
| 09/06/24 | 5.12 | 5.06 | 4.72 | 4.10 | 3.65 | 3.53 | 3.49 | 3.59 | 3.71 | 4.09 | 4.02 |
| 09/09/24 | 5.10 | 5.03 | 4.73 | 4.13 | 3.67 | 3.54 | 3.49 | 3.58 | 3.70 | 4.08 | 4.00 |
| 09/10/24 | 5.05 | 4.97 | 4.67 | 4.06 | 3.60 | 3.46 | 3.42 | 3.52 | 3.64 | 4.03 | 3.96 |
The data in the table above is static as of the time it was pulled, so rates may have changed. Treat all data in this table and PMR as indications only and availability is always subject to change. This information was pulled manually from sources we believe to be reliable. New source, as of 12/12/2022, Bloomberg, L.L.P. As of: close of business 09/10/2024.
Looking for Margin Relief?
For some time now, community banks across the country have felt the pressure of the Fed tightening interest rates. This pressure is largely due to tighter liquidity. The shift in rates has forced banks to rely more on borrowings and other wholesale funding sources. The move to other funding sources has pushed the cost of funds higher, resulting in pressure on margin. With the expectation of the end of this tightening cycle in sight, margin relief appears on the horizon. The good news is that you might not have to wait to see margin relief still this year.
Here is one strategy a bank recently executed that had a positive impact on its margin for this year while creating a positive impact on future earnings. We believe this strategy works well with Bank Term Funding Program (BTFP). The bank had BTFP funding at 5.40 percent that matures in March of 2025. They refinanced this funding using 6 month brokered CDs at a 4.75 percent all-in cost, saving them 65 basis points. This savings equates to $32,500 per $10 million over a 6-month timeframe. It also provides a cushion to then look at repositioning some of the lower yielding bond portfolio at current market yields, helping to lock in longer-term income.
While this exact strategy may not fit your balance sheet, there may be a strategy along these lines that would benefit you. The market is evolving quickly and the calendar is getting short. If you want to look at how to make some moves that benefit you now and into the future, please reach out to us here at Country Club Bank.
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