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Wednesday, April 17, 2024

Scott Carrithers
Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino
Natalie Regan • Aaron Stoffer • David Farris • Lonnie Harris Brian Schaff Jeff Macy
Josh Kiefer • Tom Toburen •  Todd Czinege

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
04/10/24 5.39 5.41 5.37 5.21 4.97 4.80 4.61 4.59 4.55 4.75 4.62
04/11/24 5.39 5.40 5.36 5.16 4.96 4.80 4.63 4.62 4.59 4.80 4.68
04/12/24 5.38 5.39 5.35 5.14 4.90 4.73 4.56 4.55 4.52 4.75 4.63
04/15/24 5.39 5.38 5.36 5.16 4.92 4.76 4.62 4.62 4.60 4.84 4.72
04/16/24 5.39 5.38 5.37 5.19 4.99 4.84 4.70 4.69 4.67 4.89 4.76

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 4/16/2024.

Higher Rates Got You Down?

October of 2023 gave us the current market cycle high in rates all along the curve.  Since then, we saw the 5-, 10-, 20-, and 30-year treasuries fall over 100 basis points by the end of the year, only to see them sitting at the current 2024 calendar year highs.  The spread between the 3-month treasury and 10-year treasury was negative 48.5 basis points in October of 2023, but currently is sitting at negative 77 basis points.  This move back up in the longer part of the curve recently has had some wonder that if inflation keeps climbing, the 10-year treasury could climb above the short end of the curve to cause the curve to normalize.  The Fed has been very clear that their number one objective is battling inflation. This means that if inflation does in fact keep climbing, another rate hike isn’t completely off the table.  

If you are in the camp who believes rates may remain high for some time, or even go higher, then we believe utilizing a floating rate security can help provide some defense to that thought.  The following floating rate security may just be what you need.  

This GNMA floating rate CMO* has an 8 percent cap.  The Fed would have to raise seven more times before you hit the cap.  The current coupon is 6.15 percent, which is higher than current SBA floaters.  Also, this bond has zero risk-weighting as it is backed by GNMA.

If you have interest, or want to discuss other options, please reach out to your Country Club Bank Capital Markets representative.

*Indication only / Subject to change and availability without notice.

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