| Wednesday, July 27, 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 |
| 07/20/22 | 1.92 | 2.51 | 3.04 | 3.18 | 3.25 | 3.25 | 3.18 | 3.15 | 3.04 | 3.43 | 3.17 |
| 07/21/22 | 2.15 | 2.48 | 3.00 | 3.11 | 3.10 | 3.07 | 3.00 | 2.99 | 2.91 | 3.33 | 3.08 |
| 07/22/22 | 2.15 | 2.49 | 2.97 | 3.01 | 2.98 | 2.93 | 2.87 | 2.85 | 2.77 | 3.23 | 3.00 |
| 07/25/22 | 2.14 | 2.62 | 3.06 | 3.07 | 3.00 | 2.98 | 2.89 | 2.89 | 2.81 | 3.28 | 3.04 |
| 07/26/22 | 2.17 | 2.55 | 3.01 | 3.06 | 3.02 | 3.01 | 2.89 | 2.88 | 2.81 | 3.27 | 3.03 |
Source: U.S. Department of the Treasury, as of 7/26/2022
Plan the Work and Work the Plan
2022 has certainly been an eventful year for fixed income markets and investments in general. Investors trying to keep up with Federal Reserve meetings, recent hikes and ever changing forecasts can find this to be a full time job in itself. One of the ways we have discovered investors can more effectively manage all the noise is to focus solely on the next 90 days. This can be accomplished by utilizing a simple Quarterly Investment Strategy. A strategy like this is updated every 90 days as information changes both in the market place as well as in the individual financial institution. Some of the items addressed in each quarterly strategy can be:
- Identify your conviction on an interest rate outlook for the next 90 days
- Recap recent Federal Open Market Committee decisions
- Review current Federal Reserve outlook
- Plan an investment strategy for the next 90 days.
- Listed within the portfolio strategy section should be the maximum portfolio risk tolerance (allowable capital change) and current duration numbers. Also in this section you will find the banks current activity such as loan to deposit ratio, Fed Funds sold/purchased over the last 90 days, total gross loans for the year, total capital and loans approved but not yet funded.
- Finally, review product strategy
- Each investment category is listed and comments are made regarding those products and the likelihood that they will be considered for upcoming investments in the portfolio.
This Quarterly Strategy, approved by the board of directors and/or the asset liability committee, will provide all the parties with additional information regarding the investment process as well as a clearer picture of the overall landscape when considering which investments make the most sense for your particular financial institution. This report is also very helpful when it comes to exam time. If you feel this report could be helpful to you and your institution just give us a call and we can discuss customizing your own Quarterly Investment Strategy.
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