| Friday, May 19, 2023 |
||||||||
|---|---|---|---|---|---|---|---|---|
|
MANAGING DIRECTOR: |
||||||||
|
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 |
| 05/12/23 | 5.49 | 5.17 | 5.11 | 4.76 | 3.99 | 3.66 | 3.45 | 3.46 | 3.47 | 3.88 | 3.79 |
| 05/15/23 | 5.56 | 5.13 | 5.15 | 4.77 | 4.01 | 3.67 | 3.47 | 3.49 | 3.51 | 3.93 | 3.84 |
| 05/16/23 | 5.51 | 5.17 | 5.22 | 4.90 | 4.09 | 3.75 | 3.53 | 3.53 | 3.54 | 3.95 | 3.86 |
| 05/17/23 | 5.36 | 5.23 | 5.25 | 4.90 | 4.16 | 3.82 | 3.59 | 3.57 | 3.57 | 3.96 | 3.86 |
| 05/18/23 | 5.34 | 5.24 | 5.33 | 5.00 | 4.26 | 3.92 | 3.69 | 3.67 | 3.65 | 4.03 | 3.91 |
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 05/18/2023
Investing or Issuing – CDs Offer Value
The brokered CD market is both a popular fundraising and investment option for a bank’s balance sheet. This market overall often tends to lag interest rate movements. Similar to the municipal market, CDs can offer special opportunities for investors when the market becomes dislocated. We believe the inefficiencies in this market can present great opportunities worth considering.
Currently, the brokered market has a plethora of issuers looking to raise deposits in the 18-month to 3 year maturity range. As the search for deposits remains high for some, spreads have blown out in these maturities. You can discover deals with over 100bps of spread to US treasuries and comparable to current IORB (Interest on Reserve Balances) / Fed Funds rates. These brokered CDs can also surpass bullets or short final municipals, while providing a 0% risk weight / no credit risk when purchasing within the limits of the FDIC guarantee. Below are a couple of current CD offerings we believe are worth considering. Please consult your Capital Markets representative to discuss options and benefits best for your bank.
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