Friday, December 9, 2022 |
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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 |
| 11/30/22 | 4.07 | 4.37 | 4.70 | 4.74 | 4.38 | 4.13 | 3.82 | 3.76 | 3.68 | 4.00 | 3.80 |
| 12/01/22 | 4.04 | 4.33 | 4.65 | 4.66 | 4.25 | 3.98 | 3.68 | 3.62 | 3.53 | 3.85 | 3.64 |
| 12/02/22 | 3.91 | 4.34 | 4.65 | 4.69 | 4.28 | 3.99 | 3.67 | 3.61 | 3.51 | 3.79 | 3.56 |
| 12/05/22 | 3.93 | 4.36 | 4.73 | 4.77 | 4.41 | 4.13 | 3.80 | 3.72 | 3.60 | 3.84 | 3.62 |
| 12/06/22 | 3.87 | 4.37 | 4.74 | 4.73 | 4.34 | 4.07 | 3.73 | 3.64 | 3.51 | 3.77 | 3.52 |
| 12/07/22 | 3.79 | 4.29 | 4.72 | 4.67 | 4.26 | 3.97 | 3.62 | 3.54 | 3.42 | 3.66 | 3.42 |
| 12/08/22 | 3.75 | 4.28 | 4.71 | 4.71 | 4.31 | 4.04 | 3.71 | 3.63 | 3.48 | 3.71 | 3.44 |
Source: U.S. Department of the Treasury, as of 12/08/22
It’s the most wonderful time of the year
It’s the most wonderful time of the year
With kids jingle belling
And everyone telling you be of good cheer
It’s the most wonderful time of the year
The bond market has been more challenging than wonderful this year, but the holiday season has brought a bond rally as well as good cheer. The 2 year Treasury has dropped 19 basis points since November 29 while the 3 and 5 year treasuries have declined 22 and 25 basis points respectively. The Fed is expected to raise an additional 50 basis points next week and continues to talk about a “higher terminal rate”. We believe it is safe to say inflation is not completely under control. It appears the Fed is not quite at the finish line when it comes to raising rates, making this bond market very overbought and due for a sell off. As liquidity continues to be a large concern for banks, one way to take advantage of this rally is to issue brokered cds in an effort to raise funds. We have had recent success issuing and would recommend 2 and 3 year bullets and/or 4 and 5 year callables. Please reach out to your Capital Markets Group representative to learn more about the best options and strategy for your bank.
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