| Wednesday, March 15, 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 |
| 03/08/23 | 4.65 | 5.00 | 5.28 | 5.24 | 5.07 | 4.75 | 4.35 | 4.20 | 3.99 | 4.13 | 3.90 |
| 03/09/23 | 4.62 | 4.98 | 5.23 | 5.14 | 4.87 | 4.55 | 4.19 | 4.07 | 3.91 | 4.07 | 3.85 |
| 03/10/23 | 4.64 | 4.90 | 5.08 | 4.85 | 4.58 | 4.31 | 3.96 | 3.86 | 3.70 | 3.90 | 3.70 |
| 03/13/23 | 4.48 | 4.79 | 4.65 | 4.21 | 3.98 | 3.86 | 3.70 | 3.67 | 3.57 | 3.86 | 3.71 |
| 03/14/23 | 4.28 | 4.80 | 4.90 | 4.47 | 4.25 | 4.10 | 3.85 | 3.80 | 3.69 | 3.94 | 3.80 |
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 03/14/2023
Community Banks are Resilient
We discussed last month in our monthly Leaderboard Report that volatility in the market can be found when there are signs that one rate cycle is ending and a new one is beginning. Over the past week, we have seen volatility in market rates that we have not seen since “Black Monday” in 1987. The 2-year Treasury fell over 100 basis points from Thursday to Monday on the back of a couple bank failures. Then on Tuesday, the markets reversed on higher-than-expected CPI. Additionally, Bloomberg is anticipating no hike at the next meeting, with over a 60 percent chance of a Fed cut before year-end. This chance of a cut this year is a shift compared to last week’s probability of zero percent chance this year.
While the market dips are largely due to a couple larger bank failures, the community banking sector continues to be resilient and the rock for our local communities. This volatility in interest rates is normal in market shifts. However, this turbulence gives us a reason to take our foot off the gas, downshift, and assess the road ahead. Liquidity is showing to be ever important at this time. When we run into turbulent markets, the best credits and safest investments become your best friends. This is a good reminder that we should focus on assets that will behave well in rough markets when we may need them the most.
Please reach out to your Country Club Bank representative with questions, or if you just want a sounding board for your strategy. Remember, we are a community bank first and we are having the same conversations that you are having in your daily discussions. If we can be of help, we will do our best to try.
While the market dips are largely due to a couple larger bank failures, the community banking sector continues to be resilient and the rock for our local communities. This volatility in interest rates is normal in market shifts. However, this turbulence gives us a reason to take our foot off the gas, downshift, and assess the road ahead. Liquidity is showing to be ever important at this time. When we run into turbulent markets, the best credits and safest investments become your best friends. This is a good reminder that we should focus on assets that will behave well in rough markets when we may need them the most.
Please reach out to your Country Club Bank representative with questions, or if you just want a sounding board for your strategy. Remember, we are a community bank first and we are having the same conversations that you are having in your daily discussions. If we can be of help, we will do our best to try.
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