| Wednesday, March 29, 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 |
| 03/22/23 | 3.97 | 4.70 | 4.84 | 4.49 | 3.93 | 3.72 | 3.51 | 3.49 | 3.43 | 3.80 | 3.65 |
| 03/23/23 | 3.86 | 4.64 | 4.74 | 4.35 | 3.83 | 3.62 | 3.44 | 3.44 | 3.42 | 3.84 | 3.70 |
| 03/24/23 | 4.03 | 4.65 | 4.70 | 4.27 | 3.77 | 3.58 | 3.41 | 3.40 | 3.37 | 3.77 | 3.64 |
| 03/27/23 | 4.10 | 4.68 | 4.82 | 4.49 | 3.99 | 3.78 | 3.59 | 3.57 | 3.53 | 3.89 | 3.76 |
| 03/28/23 | 4.13 | 4.69 | 4.84 | 4.54 | 4.08 | 3.88 | 3.67 | 3.63 | 3.57 | 3.91 | 3.77 |
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 03/28/2023
Jeffrey Gundlach Is Speaking…Investors Should Listen
Jeffrey Gundlach is the cofounder of mutual fund company, DoubleLine Capital, which manages more than $140 billion in assets and has grown with Gundlach’s reputation as the “Bond King” in a post Bill Gross era. A renown trader, he is celebrated for his prescient market calls and correctly forecasting the housing crash in 2007.
Earlier this week on a global financial news network Gundlach announced that he expects a US recession will start in a few months, and that the Federal Reserve will need to respond “very dramatically.” He further opined that the Fed will cut rates twice this year as he expects economic data to quickly weaken. He describes the overall state of the US economy as “clearly weak” and argues that financial headwinds are building.
While this is worrisome news for equity investors, it’s a clear call to extend duration in bond portfolios. And this is where Gundlach has earned his reputation as a savvy investor who peers past the current landscape to catch a glimpse of what is to come. He sees yields headed lower across the curve. If this proves correct, the recently swelling voice of advisors urging investors to wait it out in money market funds will be a failed strategy. For when the cuts come, they’ll reprice the short end immediately and money market income will sink with the receding tide.
Even so, some investors might favor the ready liquidity of a money market instrument. Is there a “better mousetrap” for them? We think there is. A short US Treasury ladder seems well-suited for the challenge. With the benefit of an explicit marketplace which offers top-drawer liquidity, and the attractive nominal yield unencumbered by management fees, this is a bullet-proof option.
This short Treasury portfolio compares well vs. a 4% money market fund:
Yielding nearly ½% more, producing regular cashflow, durable income and the flexibility to hold or sell at any time, this six month average maturity (and shrinking) portfolio is the “easy button” equivalent.
Please call your CCB Capital Markets representative today if you’d like to assemble something similar.
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