Friday, February 10, 2023 |
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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 |
| 02/03/23 | 4.52 | 4.65 | 4.83 | 4.76 | 4.29 | 3.95 | 3.66 | 3.59 | 3.52 | 3.75 | 3.61 |
| 02/06/23 | 4.55 | 4.64 | 4.84 | 4.86 | 4.47 | 4.14 | 3.82 | 3.74 | 3.64 | 3.82 | 3.67 |
| 02/07/23 | 4.55 | 4.67 | 4.88 | 4.85 | 4.46 | 4.12 | 3.83 | 3.77 | 3.68 | 3.87 | 3.71 |
| 02/08/23 | 4.57 | 4.70 | 4.91 | 4.84 | 4.42 | 4.08 | 3.79 | 3.76 | 3.61 | 3.82 | 3.67 |
| 02/09/23 | 4.60 | 4.74 | 4.92 | 4.87 | 4.49 | 4.16 | 3.86 | 3.79 | 3.67 | 3.89 | 3.74 |
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, LP. As of: close of business 02/09/2023
A MUNICIPAL TRADER’S PERSPECTIVE
We continue to have success selling short municipal portfolio holdings inside of 5yrs with give up yields lower than 3% tax-free. This could be a great funding source for those in need of liquidity OR it could be a great opportunity to reset yields in your portfolio and recapture losses relatively quickly.
We often talk about when the ratio of tax-free municipals yields as a percentage of US treasuries goes above 80% as a buying opportunity. Currently, the short end of the municipal curve presents a different opportunity. As shown below, the ratios of bonds in the 2yr and 5yr are in the 50-60% ratios to US Treasury yields. We believe this is a great time to sell.
Please give us a call to review your holdings and see if this strategy can work for you.
2yr Muni % of UST
5yr Muni % of UST
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