| Wednesday, August 20, 2025 |
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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 |
| 08/13/25 | 4.31 | 4.21 | 4.05 | 3.85 | 3.68 | 3.64 | 3.76 | 3.97 | 4.24 | 4.80 | 4.83 |
| 08/14/25 | 4.31 | 4.22 | 4.08 | 3.90 | 3.73 | 3.70 | 3.82 | 4.02 | 4.29 | 4.85 | 4.87 |
| 08/15/25 | 4.32 | 4.22 | 4.08 | 3.93 | 3.75 | 3.72 | 3.84 | 4.05 | 4.32 | 4.90 | 4.92 |
| 08/18/25 | 4.35 | 4.23 | 4.09 | 3.93 | 3.77 | 3.72 | 3.85 | 4.07 | 4.33 | 4.91 | 4.94 |
| 08/19/25 | 4.34 | 4.20 | 4.05 | 3.91 | 3.75 | 3.71 | 3.83 | 4.04 | 4.31 | 4.89 | 4.91 |
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 08/19/2025.
Remember When Rates Went From 0% to 5%?
The same could be true when we reach the other end of the cycle and we all look back and say to ourselves, “I wish I would have done more in my bond portfolio”. Why? Because loans will be repricing lower, some loans may default, and we have liquidity coming out of our ears.
It’s time to be a Sunday Morning QB, not a Monday Morning QB and be proactive in your bond portfolio. If you have been through a cycle before, you know exactly what we are talking about. We don’t know how bad or long it will be, but we have a general idea what we need to do.
While we have a number of ideas that work well in this situation, today we are going to focus on the 7/1 Agency ARM.
It is pretty simple, with this ARM you are going to capture a 5.36% coupon at a slight premium generating a ~4.90% yield during the fixed term. After the fixed term you will own a 6-month asset that adjusts to SOFR +231 BPS. You get a great combination here of locking out your yield during the potential down cycle and experiencing little to no price risk in the future.
Please see the details below and reach out to us here at Country Club if you have any questions or care to discuss some of our other favorite opportunities.
Thank you very much for your time!
Offering subject to pricing changes and availabiltiy
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