| Friday, October 20, 2023 |
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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 |
| 10/13/23 | 5.39 | 5.49 | 5.56 | 5.39 | 5.05 | 4.81 | 4.64 | 4.65 | 4.61 | 4.96 | 4.75 |
| 10/16/23 | 5.41 | 5.49 | 5.57 | 5.42 | 5.10 | 4.87 | 4.71 | 4.73 | 4.70 | 5.07 | 4.85 |
| 10/17/23 | 5.41 | 5.50 | 5.57 | 5.47 | 5.21 | 5.01 | 4.86 | 4.88 | 4.83 | 5.15 | 4.92 |
| 10/18/23 | 5.40 | 5.49 | 5.57 | 5.46 | 5.22 | 5.05 | 4.93 | 4.95 | 4.91 | 5.23 | 4.99 |
| 10/19/23 | 5.40 | 5.47 | 5.54 | 5.42 | 5.16 | 5.01 | 4.95 | 5.01 | 4.99 | 5.34 | 5.11 |
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 10/19/2023.
Municipal Traders Perspective
Municipal yields continue to look attractive for those financial institutions or individuals looking to get into the tax-exempt space.
4% plus and occasionally 5% yields are becoming more prolific and getting more attention. Here is a sample of where tax-free and the taxable equivalent yields fall along the curve.
A/AA rated generic G.O. BQ Yields
| Tax-Free Yields | Taxable Equivalent Yields* | |
| 2026 | 4.00 | 6.75% |
| 2027 | 3.90 | 6.58% |
| 2028 | 3.90 | 6.58% |
| 2029 | 3.90 | 6.58% |
| 2030 | 4.00 | 6.75% |
| 2031 | 4.05 | 6.84% |
| 2032 | 4.10 | 6.92% |
| 2033 | 4.15 | 7.01% |
| 2034 | 4.20 | 7.09% |
| 2035 | 4.25 | 7.18% |
| 2036 | 4.40 | 7.43% |
| 2037 | 4.45 | 7.51% |
| 2038 | 4.50 | 7.60% |
| 2039 | 4.55 | 7.68% |
| 2040 | 4.65 | 7.85% |
Take a look at the taxable equivalent yields from the beginning of the year to now. 7.50 – 8% taxable equivalents look pretty attractive locked in for 15-20 years and compare well to historical returns of the equity markets.
Here are two current offerings
Ellis County USD #489 (Hays), Kansas UTGO
AA AGM Insured (A+ under)
5.00% 9-1-47 @ PAR
Call 9-1-31
Nevada S/D #R-V, Missouri UTGO Bank Qualified
AA+ Missouri Direct Deposit Program
$1600m 5% 3-1-35 @ 4.10 ytc 4.60 ytm
Call 3-1-28
THE ABOVE OFFERINGS ARE NOT FDIC INSURED. THEY ARE NEITHER DEPOSITS OR OTHER OBLIGATIONS OF THE BANK.THESE OFFERINGS INVOLVE INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. ALL OFFERINGS ARESUBJECT TO PRIOR SALE AND/OR CHANGE IN PRICE.
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