| Friday, July 21, 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 |
| 07/14/23 | 5.26 | 5.38 | 5.47 | 5.31 | 4.77 | 4.37 | 4.04 | 3.94 | 3.83 | 4.11 | 3.92 |
| 07/17/23 | 5.29 | 5.39 | 5.46 | 5.32 | 4.74 | 4.34 | 4.02 | 3.91 | 3.81 | 4.10 | 3.93 |
| 07/18/23 | 5.27 | 5.40 | 5.48 | 5.32 | 4.76 | 4.35 | 4.00 | 3.90 | 3.78 | 4.07 | 3.89 |
| 07/19/23 | 5.26 | 5.40 | 5.48 | 5.31 | 4.76 | 4.34 | 3.98 | 3.87 | 3.75 | 4.03 | 3.84 |
| 07/20/23 | 5.27 | 5.40 | 5.48 | 5.33 | 4.84 | 4.44 | 4.10 | 3.98 | 3.85 | 4.10 | 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 7/20/2023
A MUNICIPAL TRADERS PERSPECTIVE
Last week we discussed the steepness of the municipal yield curve from 10 to 20 years compared to the USTN curve. The steepness continues and while the demand from banks is down significantly, we are helping many individuals take advantage of municipal yields trading over 4% tax-free. For those investors in the highest tax brackets the tax-equivalent yields are over 6.00%. Here are a few examples available in the market today.
| Sturgeon R-V School District (Boone Co.), Missouri Unlimited Tax G.O. S&P “AA+” (Missouri Direct Deposit Program) Bank Qualified, Callable 3-1-2028 @ PAR |
TAXABLE EQUIVALENT YIELD * | ||||||||
| PAR VALUE | COUPON | MATURITY | YTC | YTM | PRICE | YTC | YTM | USTN YIELD (YTM) |
SPREAD (YTM) |
| $750,000 | 5.00% | 3-1-2039 | 3.55 | 4.46 | 106.031 | 6.00 | 7.53 | 4.00 | 353 bp |
| $900,000 | 4.00% | 3-1-2043 | 4.00 | 4.00 | 100.000 | 6.75 | 6.75 | 4.11 | 264 bp |
*Assumes 40.8% tax bracket - Indications only / Subject to change and availability.
While the bond business has been a little slow lately, we still want to hear from you. These are great times for education and awareness. Please let us know how we can help.
Source: Schwab Center for Financial Research
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