Friday, October 11, 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 |
| 10/04/24 | 4.72 | 4.62 | 4.45 | 4.18 | 3.92 | 3.83 | 3.81 | 3.87 | 3.97 | 4.32 | 4.25 |
| 10/07/24 | 4.85 | 4.65 | 4.45 | 4.23 | 4.00 | 3.90 | 3.87 | 3.93 | 4.03 | 4.38 | 4.31 |
| 10/08/24 | 4.81 | 4.63 | 4.44 | 4.20 | 3.96 | 3.87 | 3.85 | 3.91 | 4.01 | 4.36 | 4.29 |
| 10/09/24 | 4.80 | 4.66 | 4.47 | 4.25 | 4.02 | 3.93 | 3.92 | 3.98 | 4.07 | 4.42 | 4.34 |
| 10/10/24 | 4.80 | 4.65 | 4.46 | 4.20 | 3.96 | 3.87 | 3.89 | 3.96 | 4.06 | 4.42 | 4.36 |
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 10/10/2024.
OPPORTUNITY IN BANK QUALIFIED BONDS
For the last several years, we have seen a steady decline in the number of municipal bank qualified bonds being issued. This is partially due to the fact that refunding issues made up a significant portion of issuance in lower-rate environments, but higher rates beginning in 2022 essentially wiped out the benefit of refunding older issues. More significantly, supply of bank qualified bonds has been gradually diminishing because the annual $10 million issuance limit (put in place in 1986) is squeezing out more and more municipalities who are unable to meet their financing needs within that limit.
We have observed this trend to be particularly prevalent in Kansas, where bank qualified annual issuance has fallen from a peak of over $600 million in 2015 and 2016 to a year-to-date total of just over $135 million.
The good news is that we are currently seeing a slight uptick as four separate Kansas bank qualified issuers have issued this week or are planning to issue next week. This week, we were the successful bidder for a $4,550,000 Mulvane, Kansas GO issue and a $2,520,000 Hays, Kansas GO issue. We currently have just five maturities unsold on the Mulvane issue as shown below. Next week, we will be bidding on $8,005,000 Garden City, Kansas GO and $4,340,000 Hutchinson, Kansas GO, both maturing 2025/2044. Whether you are a Kansas bank or chartered in a different state, we encourage you to be mindful of the issuance in your region and consider if these tax-advantaged bonds might fit into your portfolio. Please let us know if you have questions or would care to see additional bank qualified offerings.
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