Friday, January 20, 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 |
| 01/12/23 | 4.21 | 4.59 | 4.78 | 4.66 | 4.14 | 3.81 | 3.53 | 3.49 | 3.44 | 3.74 | 3.57 |
| 01/13/23 | 4.44 | 4.60 | 4.78 | 4.68 | 4.24 | 3.90 | 3.61 | 3.56 | 3.51 | 3.78 | 3.61 |
| 01/17/23 | 4.46 | 4.60 | 4.76 | 4.68 | 4.21 | 3.88 | 3.62 | 3.59 | 3.55 | 3.82 | 3.66 |
| 01/18/23 | 4.45 | 4.66 | 4.81 | 4.63 | 4.09 | 3.73 | 3.44 | 3.40 | 3.37 | 3.66 | 3.54 |
| 01/19/23 | 4.44 | 4.66 | 4.82 | 4.66 | 4.13 | 3.77 | 3.48 | 3.43 | 3.39 | 3.69 | 3.57 |
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 01/19/2023
A Municipal Trader's Perspective
While municipal yields have come down from the recent highs in Mid-October 2022, they still offer some value in the 10 – 15 year time frame.
Generic AAA Municipal curve –vs- US Treasury curve
Source: Bloomberg
Historically when muni to treasury ratios are in the 80% range municipals are considered cheap. As you can see in the chart above, generic AAA levels are actually quite expensive. We recommend SELLING municipals inside of 7 years and extending 10-15 years on final maturity while targeting at least a 3% tax-free yield to a call beyond 5 years. Here are a few mid-western credits along with taxable equivalents and percentage to treasury ratios to compare. These all offer ratios in the upper 80’s to over 100% of US treasuries.
Treat information as indications only and all detail/levels are subject to change and availability. The information was pulled from sources we believe to be reliable.
Generic AAA Municipal curve –vs- US Treasury curve
Source: Bloomberg
Historically when muni to treasury ratios are in the 80% range municipals are considered cheap. As you can see in the chart above, generic AAA levels are actually quite expensive. We recommend SELLING municipals inside of 7 years and extending 10-15 years on final maturity while targeting at least a 3% tax-free yield to a call beyond 5 years. Here are a few mid-western credits along with taxable equivalents and percentage to treasury ratios to compare. These all offer ratios in the upper 80’s to over 100% of US treasuries.
Treat information as indications only and all detail/levels are subject to change and availability. The information was pulled from sources we believe to be reliable.
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