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Friday, January 19, 2024
 

MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
George Morris • Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino
Natalie Regan • Aaron Stoffer • David Farris • Lonnie Harris • Brian Schaff • Jeff Macy
Josh Kiefer • Robert Schuyler • Tom Toburen •  Todd Czinege

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
01/11/24 5.37 5.37 5.22 4.74 4.25 4.00 3.88 3.93 3.97 4.30 4.17
01/12/24 5.39 5.37 5.19 4.67 4.15 3.93 3.83 3.89 3.94 4.29 4.18
01/16/24 5.39 5.36 5.21 4.72 4.22 4.01 3.93 4.00 4.06 4.41 4.30
01/17/24 5.39 5.38 5.22 4.83 4.36 4.14 4.03 4.08 4.10 4.44 4.31
01/18/24 5.36 5.37 5.22 4.82 4.36 4.14 4.05 4.11 4.14 4.49 4.37

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 01/18/2024.


Call Protection
 
After the December 13 Fed meeting, the market began pricing in as many as 9 cuts for the year.  The earliest of those cuts being in March.  A Treasury rally quickly became the reality.  There has been a little reprieve in that movement with there now being only a 50% chance for a cut in March, down from 71% last Friday. Two-year Treasury yields are also up 20 basis points (bps) from Friday as well. Fundamentally, nothing has really changed.  The Fed is still planning to cut rates at least 3 times this year with lower rates expected throughout the year. We believe this is a buying opportunity and would suggest a blend of coupon and call protection in this 7y/2y annual call bond.  With a yield of 4.75% you are picking up 42 bps to the 2y US Treasury and 65 bps to the 7y US Treasury with only 5 call dates. 

Please reach out to your CCB rep to discuss how this would impact your portfolio.


Source: Bloomberg, LP / Indications only – Subject to change and availability                                                                                                                            


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