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Thursday, June 3, 2021


Scott Carrithers

George Morris • Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino
Jeff Goble • Nicole Burczyk • Natalie Regan • Aaron Stoffer • David Farris • Lonnie Harris
 Brian Schaff • Josh Kiefer • Robert Schuyler • Tom Toburen • Aaron Hemphill

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
05/26/21 0.00 0.02 0.04 0.04 0.14 0.31 0.80 1.24 1.58 2.17 2.27
05/27/21 0.00 0.02 0.04 0.04 0.14 0.31 0.81 1.28 1.61 2.20 2.29
05/28/21 0.01 0.01 0.03 0.05 0.14 0.30 0.79 1.24 1.58 2.18 2.26
06/01/21 0.01 0.02 0.04 0.04 0.16 0.31 0.81 1.28 1.62 2.22 2.30
06/02/21 0.01 0.02 0.04 0.05 0.13 0.30 0.80 1.26 1.59 2.21 2.28
                                                                                                                                                                  Source: U.S. Department of Treasury as of 6/2/2021

Are Savings Here to Stay?

The Coronavirus pandemic has kept many of us close to home over the past year, understandably.  The fear of venturing out directly impacted the saving habits of many consumers at an alarming rate.  The previous record for the personal savings rate was 17.3 percent in 1975.  In April 2020, the personal savings rate almost doubled the previous record after reaching 33 percent.  As of April 2021, the personal savings rate has now cooled and is back down to 14.5 percent. 

While we continue to deal with the virus, the CDCs recent recommendation relaxed mask requirements for vaccinated individuals.  This change in guidance and further opening of the economy by several governors across the country is likely to have a direct impact on travel and increased spending habits of consumers.  There is likely a strong desire by many to make up for what seems like a lost year and seeing or doing very little with friends and family.  Now that people appear more comfortable venturing out, this means savings rates could continue to decline.  This also could be notice to banks that we should expect to see deposits leave as consumers increase spending. 

If your bank is beginning to see deposits leave the bank and are concerned about what might happen with liquidity, then you might want to consider a different alternative to locking in funding.  Longer-term funding continues to be a very attractive option from both a pricing and an interest rate risk perspective.  The best time to add liquidity is just before you actually need it.  Reach out to your CCB Representative with questions, or for more information.


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