| Friday, April 28, 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 |
| 04/21/23 | 3.33 | 5.07 | 5.04 | 4.76 | 4.18 | 3.89 | 3.66 | 3.62 | 3.57 | 3.91 | 3.78 |
| 04/24/23 | 3.45 | 5.00 | 5.02 | 4.72 | 4.09 | 3.79 | 3.57 | 3.53 | 3.49 | 3.84 | 3.71 |
| 04/25/23 | 3.98 | 5.04 | 4.96 | 4.64 | 3.96 | 3.65 | 3.45 | 3.43 | 3.40 | 3.77 | 3.66 |
| 04/26/23 | 3.67 | 5.12 | 4.99 | 4.67 | 3.95 | 3.69 | 3.50 | 3.48 | 3.65 | 3.82 | 3.71 |
| 04/27/23 | 4.18 | 5.15 | 5.05 | 4.77 | 4.07 | 3.81 | 3.59 | 3.57 | 3.52 | 3.88 | 3.75 |
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 04/27/2023
A Trader's Perspective
Just as the market began to calm after the collapse of SVB, volatility was back as news of stress at First Republic Bank spread. Once again, this news comes ahead of a FOMC decision next week and an expected hike of 25 basis points. The question now becomes will there be a pause after this anticipated hike?
On Thursday, 1st Quarter GDP came in at 1.1%. Three manufacturing surveys were also announced this week from Dallas, Richmond, and Kansas City and all were negative and point to a potential slowdown. The Fed Fund Futures chart is now showing not only a pause but rate cuts for later in the year. In this economic environment we prefer bonds with call protection and those offering the opportunity to lock in yield. The first example is a 5-year discounted callable with a spread of +47 basis points (bps) to a comparable US Treasury. The second is a current coupon with a 7-year maturity and 3 years of call protection which allows the investor to pick up +77bps to the 3-year UST and +100bps to the 7-year UST.
FNMA 1.00% 10/27/28-7/23 85.212 4.03% YTM 73.80% YTC
FHLB 4.55% 5/1/30-5/26 100.00 4.55% YTM 4.55% YTC
FHLB 4.55% 5/1/30-5/26 100.00 4.55% YTM 4.55% YTC
Source: Bloomberg / Indications only – All subject to change and availability
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