Wednesday, March 19, 2025
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MANAGING DIRECTOR:
Scott Carrithers
PORTFOLIO SALES AND SERVICE:
Chris Thompson • Sean Doherty • Mark Tranckino • Brian Schaff
Natalie Regan • Aaron Stoffer • David Farris • Jeff Macy
Josh Kiefer • Todd Czinege • Trey Valentine • Cody Kreutziger
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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 |
| 03/12/25 |
4.29 |
4.30 |
4.24 |
4.06 |
3.96 |
3.99 |
4.03 |
4.19 |
4.27 |
4.62 |
4.59 |
| 03/13/25 |
4.28 |
4.30 |
4.23 |
4.03 |
3.99 |
3.95 |
4.07 |
4.15 |
4.31 |
4.66 |
4.63 |
| 03/14/25 |
4.29 |
4.29 |
4.25 |
4.08 |
4.02 |
4.01 |
4.09 |
4.21 |
4.31 |
4.65 |
4.62 |
| 03/17/25 |
4.30 |
4.29 |
4.26 |
4.11 |
4.04 |
4.03 |
4.09 |
4.20 |
4.30 |
4.63 |
4.59 |
| 03/18/25 |
4.30 |
4.28 |
4.25 |
4.13 |
4.04 |
4.02 |
4.07 |
4.19 |
4.28 |
4.62 |
4.59 |
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 3/18/2025.
How to get in to the Bond Buyer HOF
We get in to the Bond Buyer Hall of Fame (HOF) the same way an athlete does, taking a highly disciplined approach to our craft and trying to maintain a degree of consistency throughout our career. This sounds like something that is attainable in banking, so why don’t we see many bank portfolios in the HOF?
Simple, we likely fall in to the banker’s trap, cycle after cycle. When rates are low, the economy is weak, loan demand is shrinking and liquidity is plentiful so what do we do? Buy a bunch of bonds at cycle low yields.
When rates transition to the high end of the cycle, the economy is strong, loan demand is growing and liquidity is tight so what do we do? Buy few to no bonds at cycle high yields.
Sound familiar? When rates move from low to high, like they just did, our AOCI can be very unsettling. When rates go from high to low and investing in bonds stopped at the highs, we will have no low hanging fruit (or higher yielding bonds at a gain) to harvest to supplement any loan and or/ capital issues.
While it is easy to understand we are all in the business to make loans, it is important to also taking a disciplined approach in the bond portfolio and consistently being a buyer. Bankers will most likely be investing more near the bottom of the rate/economic cycle, however we believe it is important to earmark a portion of our cash flow for the bond portfolio near the top of the rate/economic cycle.
Anyone who has been through a few cycles knows this to be the case yet we find most of us struggle to maintain discipline and/or consistency. There is still time to do what we believe is right and try and get our name on the next HOF ballot.
It is important to remain focus on the best structures for this environment…duration protection and spread. Below are a few of our favorites. Please reach out with any interest or thoughts.
(Indications only, subject to change and availability without further notice)
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
