| Friday, March 17, 2023 |
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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 |
| 03/10/23 | 4.64 | 4.90 | 5.08 | 4.85 | 4.58 | 4.31 | 3.96 | 3.86 | 3.70 | 3.90 | 3.70 |
| 03/13/23 | 4.48 | 4.79 | 4.65 | 4.21 | 3.98 | 3.86 | 3.70 | 3.67 | 3.57 | 3.86 | 3.71 |
| 03/14/23 | 4.28 | 4.80 | 4.90 | 4.47 | 4.25 | 4.10 | 3.85 | 3.80 | 3.69 | 3.94 | 3.80 |
| 03/15/23 | 3.92 | 4.66 | 4.62 | 4.06 | 3.89 | 3.79 | 3.55 | 3.53 | 3.45 | 3.77 | 3.64 |
| 03/16/23 | 3.86 | 4.66 | 4.85 | 4.47 | 4.16 | 4.00 | 3.73 | 3.69 | 3.58 | 3.86 | 3.70 |
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, LP. As of: close of business 03/16/2023
A Municipal Trader’s Perspective
Tax-exempt municipal yields have become relatively more attractive to corresponding taxable Treasury yields as a result of the rally in bond prices since March 8th. Said differently, the ratio of tax-exempt yields compared to taxable yields is now much higher, indicating municipals are more attractive. Municipal yields typically lag fast-moving Treasury yields, but recently the lack of demand for municipals has kept tax-exempt yields almost unchanged, while Treasury yields have plunged. As such, they are now the best value they have been all year.
Given the need for additional liquidity, many banks have been considering the sale of some of their municipal holdings. The number of Bids Wanted on the municipal wire have dominated the secondary space, predominately with bonds maturing in 3 to 10 years. Fortunately for sellers, the inversion in the Treasury yield curve has kept tax-exempt take-out yields in the 3.25 - 3.50% range. We believe this is the sweet spot for those selling municipals - the 3-10 year maturity range - particularly for coupons that are 3% or higher. Please let us know if we can assist you in identifying your best sales candidates.
Given the need for additional liquidity, many banks have been considering the sale of some of their municipal holdings. The number of Bids Wanted on the municipal wire have dominated the secondary space, predominately with bonds maturing in 3 to 10 years. Fortunately for sellers, the inversion in the Treasury yield curve has kept tax-exempt take-out yields in the 3.25 - 3.50% range. We believe this is the sweet spot for those selling municipals - the 3-10 year maturity range - particularly for coupons that are 3% or higher. Please let us know if we can assist you in identifying your best sales candidates.
2yr / 5yr/ 10yr USTN SINCE 12/30/2022
Source: Bloomberg
THE ENTIRE US TREASURY CURVE SINCE 3/8/2023
Source: Bloomberg
INCREASED RATIOS HIGHTLIGHT MUNICIPAL VALUE*
Elsberry R-II S/D, Missouri - Unlimited Tax G.O. Bank Qualified
AA+ Missouri Direct Deposit
$355,000 4% due 3-1-38 offered @ 3.60 ytc = 97% of ustn
Call 3-1-28 3.84 ytm = 103% of ustn
Central County Fire Protection District, Missouri - Unlimited Tax G.O. Bank Qualified
Aa1
$1,000,000 5% due 2-1-2043 offered @ 3.50 ytc = 96% of ustn
Call 2-1-31 4.23 ytm = 109% of ustn
*Indications only, subject to change and availability
INCREASED RATIOS HIGHTLIGHT MUNICIPAL VALUE*
Elsberry R-II S/D, Missouri - Unlimited Tax G.O. Bank Qualified
AA+ Missouri Direct Deposit
$355,000 4% due 3-1-38 offered @ 3.60 ytc = 97% of ustn
Call 3-1-28 3.84 ytm = 103% of ustn
Central County Fire Protection District, Missouri - Unlimited Tax G.O. Bank Qualified
Aa1
$1,000,000 5% due 2-1-2043 offered @ 3.50 ytc = 96% of ustn
Call 2-1-31 4.23 ytm = 109% of ustn
*Indications only, subject to change and availability
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