| Friday, January 26, 2024 |
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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 |
| 01/19/24 | 5.35 | 5.35 | 5.23 | 4.85 | 4.38 | 4.16 | 4.05 | 4.09 | 4.12 | 4.45 | 4.33 |
| 01/22/24 | 5.37 | 5.37 | 5.23 | 4.86 | 4.32 | 4.15 | 3.87 | 4.07 | 3.90 | 4.21 | 4.05 |
| 01/23/24 | 5.37 | 5.36 | 5.23 | 4.84 | 4.37 | 4.10 | 4.04 | 4.10 | 4.13 | 4.48 | 4.36 |
| 01/24/24 | 5.36 | 5.37 | 5.24 | 4.82 | 4.38 | 4.19 | 4.09 | 4.14 | 4.18 | 4.52 | 4.41 |
| 01/25/24 | 5.37 | 5.36 | 5.20 | 4.76 | 4.29 | 4.10 | 4.00 | 4.08 | 4.12 | 4.48 | 4.37 |
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 01/25/2024.
Bank Term Funding Program Alternative
March of 2023 was a stressful time for banks and liquidity became an issue for some institutions. The Federal Reserve unveiled the Bank Term Funding Program (BTFP) allowing banks to use current collateral to borrow at an attractive rate for up to two years. On Wednesday, after the market close, the Fed announced there would now be a floor on the interest rate charged for new money until the March 11 end date. The floor is equal to the rate paid on reserves causing a jump of approximately 60 basis points to 5.40%. Banks who were hoping to utilize this program or reprice their borrowing cost for the next year before the deadline next month will now have a much higher than expected cost.
An opportunity to lock in lower borrowing costs, without the use of collateral, is available by issuing Brokered CDs. For those new to the program, the process is very straightforward and mapped out below. Issuance amounts can range from $1mm-100mm. The current all-in indicative cost to issue offers a savings below the revised cost of the BTFP Program: (subject to change without notice)
- 9-month issue - 5.00%
- 12-month issue - 4.90%
Please call your CCB representative to discuss further.
To read the full Fed press release, please see the link below:
https://www.federalreserve.gov/newsevents/pressreleases/monetary20240124a.htm
https://www.federalreserve.gov/newsevents/pressreleases/monetary20240124a.htm
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