Friday, September 20, 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 |
| 09/13/24 | 5.00 | 4.89 | 4.64 | 4.02 | 3.58 | 3.44 | 3.43 | 3.53 | 3.65 | 4.05 | 3.98 |
| 09/16/24 | 4.92 | 4.87 | 4.59 | 3.96 | 3.55 | 3.41 | 3.40 | 3.49 | 3.61 | 3.99 | 3.92 |
| 09/17/24 | 4.91 | 4.85 | 4.53 | 4.00 | 3.60 | 3.46 | 3.44 | 3.53 | 3.64 | 4.03 | 3.96 |
| 09/18/24 | 4.79 | 4.75 | 4.51 | 3.98 | 3.62 | 3.49 | 3.48 | 3.58 | 3.70 | 4.08 | 4.02 |
| 09/19/24 | 4.64 | 4.73 | 4.48 | 3.96 | 3.60 | 3.49 | 3.50 | 3.61 | 3.74 | 4.13 | 4.07 |
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 09/19/2024.
Are you seeking to engage in the current market, but faced with liquidity constraints or have existing FHLB borrowings? We’ve consulted with numerous accounts needing to reduce FHLB borrowings or wanting to extend to longer-duration securities to lock-in current yields, but prior to Q3 have been constrained by overall accumulated other comprehensive income (AOCI) losses.
Community banks have faced the challenges of over 500 basis points in rate hikes over the past two years. However, we are now approaching nominal rate levels where banks can sell investments with minimal or no losses. The 3-year UST has decreased by over 150 basis points from its peak in 2023. As of Q2 2024, AOCI has significantly improved for most community banks, with further improvements expected in Q3 as yields continue to fall, enhancing the capacity to rebalance overall balance sheets.
3yr UST
Source: Bloomberg, LP
Example Of A Bank’s AOCI (Unrealized Loss) Change Over Time
Source: Country Club Bank / AMG
For those seeking liquidity, two effective strategies include selling 2-3 year duration municipals or fixed-rate mortgage pools. Give up yields remain in the low 4% range, with several clients exiting positions at slight gains. If you have any questions or would like a portfolio review, please contact your CCB representative.
3yr Duration Muni Example
Indications only / Subject to change and availability without notice
2yr Duration MBS Example
Indications only / Subject to change and availability without 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