| Wednesday, May 29, 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 |
| 05/21/24 | 5.37 | 5.39 | 5.37 | 5.14 | 4.83 | 4.60 | 4.44 | 4.42 | 4.41 | 4.65 | 4.55 |
| 05/22/24 | 5.36 | 5.41 | 5.38 | 5.17 | 4.87 | 4.65 | 4.46 | 4.44 | 4.42 | 4.65 | 4.54 |
| 05/23/24 | 5.37 | 5.41 | 5.39 | 5.20 | 4.94 | 4.71 | 4.53 | 4.50 | 4.48 | 4.66 | 4.58 |
| 05/24/24 | 5.38 | 5.41 | 5.39 | 5.20 | 4.95 | 4.72 | 4.53 | 4.49 | 4.47 | 4.66 | 4.57 |
| 05/28/24 | 5.37 | 5.40 | 5.38 | 5.22 | 4.97 | 4.76 | 4.59 | 4.57 | 4.55 | 4.75 | 4.66 |
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 5/28/2024.
Finding Value in Muniland
Last week’s PMRs both focused on today’s municipal bond market and its current attractiveness. Wednesday’s piece dealt with the increasing muni yield ratios (versus treasuries) that can now be readily found in excess of 80% in maturities longer than 10 years. Historically these ratios are a huge buy signal.
Friday’s missive from the trading desk continued with the muni ratio theme, the current relative “cheapness” in the market, and the supply/demand dynamics that typically cause these higher ratios to normalize and fall over the course of a normal summer.
The graph below depicts the yield on a 20 year AA municipal G.O. bond over the past ten years. As you can see, other than a couple months last fall and a couple of months in 2022, today’s yields are the highest we’ve seen in at least 10 years.
Source: Bloomberg
Currently our Capital Markets Group has a varied inventory of quality bank qualified names with nominal yields of 4.00% or better and muni/treasury ratios well in excess of 80%. If you have been considering locking in long term income for your portfolio, give us a call. It’s one of the best opportunities we’ve had in the past decade or longer.
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