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Wednesday, October 16, 2024
 

MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino • Brian Schaff
Natalie Regan • Aaron Stoffer • David Farris • Jeff Macy • Stanley Strecker
Josh Kiefer • Tom Toburen • Todd Czinege • Trey Valentine • Cody Kreutziger

US Treasury Market
Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
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
10/11/24 4.83 4.63 4.45 4.19 3.96 3.88 3.90 3.99 4.10 4.46 4.41
10/15/24 4.79 4.63 4.44 4.18 3.95 3.86 3.86 3.93 4.03 4.38 4.32

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 10/15/2024.

                                                                                                                                                                                        


Confidence is Key
 
While uncertainty persists regarding the magnitude of short-term rate cuts, there is one thing you can remain confident in: rates remain projected to drop as indicated by Bloomberg’s WIRP (World Interest Rate Probability). As of next July, the current expectation is that we should see a total of 5 rate cuts taking us to an implied overnight rate of about 3.50%.

 
                                                       Source: Bloomberg LP as of 10/15/24.

As the banking industry continues to work through its liquidity constraints, confident and active participation in the bond market remains important for this next phase of the interest rate cycle. The good news is there are several solid structures and opportunities remaining to benefit your bank:
  • Municipal bonds with call protection/lock out
  • Agency callables with call protection
  • MBS with great spreads and favorable convexity profiles
Another thing to have confidence in is your Capital Markets Group representative being available and ready to answer questions you have regarding opportunities and strategies for your bank. 

We appreciate your time and have a great day!

 



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