Wednesday, September 4, 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 |
| 08/27/24 | 5.33 | 5.11 | 4.84 | 4.39 | 3.90 | 3.72 | 3.65 | 3.72 | 3.82 | 4.20 | 4.11 |
| 08/28/24 | 5.31 | 5.11 | 4.84 | 4.40 | 3.87 | 3.73 | 3.67 | 3.73 | 3.84 | 4.22 | 4.13 |
| 08/29/24 | 5.29 | 5.13 | 4.86 | 4.42 | 3.90 | 3.75 | 3.67 | 3.76 | 3.86 | 4.24 | 4.15 |
| 08/30/24 | 5.27 | 5.12 | 4.86 | 4.41 | 3.92 | 3.78 | 3.70 | 3.80 | 3.90 | 4.29 | 4.20 |
| 09/03/24 | 5.24 | 5.12 | 4.84 | 4.37 | 3.87 | 3.73 | 3.64 | 3.73 | 3.83 | 4.21 | 4.12 |
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 09/03/2024.
Any Steam Remaining?
The effect of the recent market activity is two-sided. On one hand, new bond purchases aren’t yielding what they used to. However, the value of current holdings has also increased, which has lowered the size of unrealized losses. We see this as an opportunity to use the recent rally to evaluate bond swaps, which are in many cases more feasible now than they have been. This strategy frees up capital to jump on nice relative rates while not taking on as much loss.
The peak in absolute yields may be in the rearview mirror, but there’s still benefit to adding to the investment portfolio as the yield curve continues to normalize from inversion. The question to those who follow fixed income markets: “Is there more steam left in this rally?”. There’s no telling what will happen from one day to the next, but looking at the broader scope it appears this could be part of a larger trend as the Fed appears poised to begin cutting.
As the fourth quarter approaches, let us know if you’d like to start a dialogue on repositioning your portfolio for the road ahead.
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.
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