| Friday, June 17, 2022 | ||||||||
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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 |
| 06/10/22 | 1.10 | 1.39 | 1.98 | 2.58 | 3.06 | 3.21 | 3.25 | 3.24 | 3.15 | 3.45 | 3.20 |
| 06/13/22 | 1.13 | 1.73 | 2.25 | 2.89 | 3.40 | 3.56 | 3.56 | 3.53 | 3.43 | 3.68 | 3.42 |
| 06/14/22 | 1.19 | 1.83 | 2.43 | 3.15 | 3.45 | 3.60 | 3.61 | 3.60 | 3.49 | 3.72 | 3.45 |
| 06/15/22 | 1.21 | 1.74 | 2.32 | 2.93 | 3.20 | 3.35 | 3.38 | 3.39 | 3.33 | 3.64 | 3.39 |
| 06/16/22 | 1.19 | 1.59 | 2.24 | 2.88 | 3.14 | 3.33 | 3.35 | 3.36 | 3.28 | 3.59 | 3.35 |
Source: U.S. Department of the Treasury, as of 6/16/2022
MUNI VOLATILITY...Huh?
The municipal bond market is typically pretty quiet with moves in yields changing over several months, not overnight. 2022 is bringing back glimpses of March/April of 2020 with wild swings in yields that have created lots of opportunities to buy at yields not seen in many years. In fact the 10 year average of the AAA 5yr yield is 1.20. The current AAA 5yr yield is now 2.30. The 10yr average of the AAA 10yr yield is 1.95. The current AAA 10yr yield is now 2.81. Both are within 10-20 bps of the high in yields over the last 10 years. It can be difficult to know if you think you are getting a good deal. Comparing the tax-free yield as a percentage to US treasuries is a great gauge in value. Anything over 80% has historically been attractive. When percentages get to over 90% it is usually a strong signal to BUY. 100% doesn’t happen often and you shouldn’t let the opportunity pass you by.
Below are 2 recent bank qualified deals to show you where yields are currently and what the percentage to treasuries are across the curve along with tax equivalent yields for both C-corps and S-corps.
Below are 2 recent bank qualified deals to show you where yields are currently and what the percentage to treasuries are across the curve along with tax equivalent yields for both C-corps and S-corps.
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