Friday, August 16, 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 |
| 08/09/24 | 5.35 | 5.22 | 4.98 | 4.49 | 4.06 | 3.88 | 3.80 | 3.84 | 3.94 | 4.31 | 4.22 |
| 08/12/24 | 5.36 | 5.21 | 4.98 | 4.48 | 4.02 | 3.83 | 3.75 | 3.79 | 3.91 | 4.29 | 4.20 |
| 08/13/24 | 5.32 | 5.18 | 4.93 | 4.40 | 3.93 | 3.75 | 3.67 | 3.73 | 3.84 | 4.24 | 4.16 |
| 08/14/24 | 5.33 | 5.21 | 4.96 | 4.43 | 3.96 | 3.77 | 3.68 | 3.73 | 3.84 | 4.22 | 4.13 |
| 08/15/24 | 5.32 | 5.22 | 5.00 | 4.54 | 4.10 | 3.90 | 3.79 | 3.83 | 3.91 | 4.27 | 4.17 |
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 08/15/2024.
State Credit Enhancements for Municipal Bonds
Many U.S. States offer programs which provide additional security to bondholders of certain types of municipal debt, primarily the general obligation bonds issued by local school districts. This adds an extra layer of protection beyond the underlying payment source, as the state pledges to back the bonds in one form or another. The ratings for the enhancement programs are generally tied directly to the state’s own credit rating, and are usually either equivalent to the state rating or one notch below, depending upon the nature of the pledge.
There are essentially six different types of programs based on pledge:
Of the states that we most frequently trade municipal bonds in (primarily the Midwest and surrounding states), seven of those have state credit enhancement programs: Arkansas, Colorado, Minnesota, Missouri, North Dakota, South Dakota and Texas. The types of programs and ratings for each are as follows:
Adding local municipal bonds to your portfolio that carry the backing of their state is an excellent way to enhance the safety of your holdings, and in our view, the state-backed pledge is a far stronger security than that of municipal bond insurance. While some states are of course in shorter supply than others, there is generally a plentiful supply of bank qualified bonds in the marketplace with state enhancements. Please let us know if you have questions or would care to discuss adding some municipal bonds to your portfolio.
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