| Wednesday, January 31, 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 |
| 01/24/24 | 5.36 | 5.37 | 5.24 | 4.82 | 4.38 | 4.19 | 4.09 | 4.14 | 4.18 | 4.52 | 4.41 |
| 01/25/24 | 5.37 | 5.36 | 5.20 | 4.76 | 4.29 | 4.10 | 4.00 | 4.08 | 4.12 | 4.48 | 4.37 |
| 01/26/24 | 5.37 | 5.36 | 5.21 | 4.78 | 4.35 | 4.15 | 4.04 | 4.10 | 4.14 | 4.48 | 4.37 |
| 01/29/24 | 5.38 | 5.36 | 5.21 | 4.76 | 4.32 | 4.11 | 3.98 | 4.04 | 4.08 | 4.42 | 4.31 |
| 01/30/24 | 5.37 | 5.36 | 5.20 | 4.79 | 4.34 | 4.12 | 3.97 | 4.01 | 4.03 | 4.37 | 4.25 |
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 01/30/2024.
Tax-Free + Call Protection
Today is Fed day, and another pause appears to be the strategy. Looking at interest rate projections, cuts are forecasted around the midpoint of the year. Whether or not you agree about the magnitude, between 5-6 cuts projected in the chart below, the consensus among market professionals is for lower interest rates in 2024.
Going into what could be a down rate environment, consider an approach that emphasizes capturing current market yield and limiting optionality. There are a few different ways to do this, but high quality tax-free municipal bonds can help improve the health of the investment portfolio.
These newly negotiated Missouri bonds are Bank Qualified and Unlimited General Obligations of their respective issuers. Both feature a 5 year call, and with the 5 year USTN now well below 4%, here is how they currently spread to Treasuries:
S Corp Taxable Equivalent Yield: 5.11% YTW, +124 basis points
C Corp Taxable Equivalent yield: 4.56% YTW, +69 basis points
The detail is static as of the time it was pulled, so information may have changed. Treat as indications only as market may have moved. This information is intended for institutional investors only and pulled from sources we believe to be reliable. The material provided in this document/presentation is for informational purposes only and is intended solely for private use.
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