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Wednesday, July 16, 2025
 

MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
Chris Thompson • Sean Doherty • Mark Tranckino • Brian Schaff
Natalie Regan • Aaron Stoffer • David Farris • Jeff Macy 
Josh Kiefer • Todd Czinege • Trey Valentine • Cody Kreutziger

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
07/09/25 4.30 4.36 4.27 4.06 3.85 3.81 3.91 4.10 4.33 4.86 4.87
07/10/25 4.30 4.35 4.27 4.07 3.87 3.84 3.94 4.13 4.35 4.87 4.87
07/11/25 4.30 4.34 4.26 4.08 3.89 3.86 3.97 4.18 4.41 4.95 4.95
07/14/25 4.31 4.34 4.27 4.09 3.90 3.88 3.99 4.20 4.44 4.98 4.98
07/15/25 4.31 4.34 4.29 4.12 3.94 3.92 4.04 4.25 4.48 5.02 5.02

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 7/15/2025.
                                                                                                                                                                                      


Municipal Strategy

A steepening yield curve presents opportunities to reposition that we have not seen in quite a while.

While the Fed has been slow to adjust short term rates, markets are beginning to steepen, especially in the municipal tax-free sector, which presents opportunities for repositioning.  The intermediary range of the municipal yield curve is the steepest it’s been since August of 2022 (a much lower rate environment), the 2/10-year spread is currently about 60bps. Even more dramatic is the steepness in the longer portion of the curve. 2/20-year spreads are roughly 160bps of spread – the widest spread going back 10 years.  
 
 
Our municipal desk likes the following strategy in this market:

Sell short currently callable 3% coupons that are not likely to appreciate in a lower rate environment. The juice has been squeezed out of these bonds – meaning a 100 or 200bps move lower in rates will not generate any additional increase in price or gains for the customer. We recommend buying longer, higher coupon (higher income) structures than will benefit if rates move lower. Higher income today, and outsized gains in the future if called prior to maturity.

We appreciate your continued confidence in the Country Club Bank CMG team.
Call us if we can be of assistance in any way.


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