| Wednesday, March 13, 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 |
| 03/06/24 | 5.37 | 5.39 | 5.32 | 4.96 | 4.56 | 4.33 | 4.12 | 4.12 | 4.10 | 4.35 | 4.24 |
| 03/07/24 | 5.38 | 5.39 | 5.31 | 4.94 | 4.50 | 4.28 | 4.07 | 4.09 | 4.09 | 4.35 | 4.24 |
| 03/08/24 | 5.37 | 5.38 | 5.30 | 4.93 | 4.47 | 4.24 | 4.04 | 4.06 | 4.07 | 4.35 | 4.25 |
| 03/11/24 | 5.37 | 5.40 | 5.32 | 4.96 | 4.53 | 4.30 | 4.08 | 4.09 | 4.09 | 4.36 | 4.26 |
| 03/12/24 | 5.37 | 5.39 | 5.31 | 5.01 | 4.58 | 4.33 | 4.15 | 4.16 | 4.15 | 4.41 | 4.31 |
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 3/12/2024.
February 2024 Bank Investment Portfolio Review
Today’s Portfolio Manager’s Report will take the opportunity to review bank bond portfolio activity for the month of February. The data comes from us internally here at CCB CMG and is shown as a percentage of par value traded.
As a community bank, Country Club Bank overwhelmingly tends to do business with other community banks. So, if you are a banker reading this, then you are looking at trade data for banks that likely look and operate very similarly to your own.
Were Banks Buyers or Sellers?
| February 2024 | |
| Purchases | 91.81% |
| Sales | 8.19% |
| February 2023 | |
| Purchases | 31.8% |
| Sales | 68.2% |
Liquidity is still very much top of mind for bankers, but seems to be less concerning than it was this time last year. The Fed’s Bank Term Funding Program (BTFP) could be playing a role here. The emergency program, now closed to making new loans, is still providing funding for banks. Whether or not liquidity is actually in a better place or funding is coming from other sources than selling bonds, banks are better able to add investments—taking advantage of higher yields—rather than selling at losses.
What were banks buying?
Investment portfolios favored mortgage-backed securities. Yield spreads continue to be higher than historical averages across MBS products.
Supply and demand imbalance in the municipal market is keeping offering yields at unattractive levels. Maturities through 10 years of bank qualified new issues are commonly coming to market at yields at 60-70% of Treasuries.
What were banks selling?
Thank you for your time, and please reach out to your CCB representative to discuss the appropriate investment strategy for your bank moving forward.
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