| Wednesday, June 7, 2023 |
||||||||
|---|---|---|---|---|---|---|---|---|
|
MANAGING DIRECTOR: |
||||||||
|
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 |
| 05/31/23 | 5.16 | 5.40 | 5.44 | 5.18 | 4.41 | 4.05 | 3.76 | 3.71 | 3.65 | 4.02 | 3.86 |
| 06/01/23 | 5.19 | 5.37 | 5.41 | 5.14 | 4.34 | 3.98 | 3.70 | 3.65 | 3.60 | 3.97 | 3.82 |
| 06/02/23 | 5.11 | 5.37 | 5.46 | 5.24 | 4.50 | 4.14 | 3.85 | 3.79 | 3.70 | 4.04 | 3.89 |
| 06/05/23 | 5.18 | 5.30 | 5.42 | 5.17 | 4.47 | 4.11 | 3.82 | 3.76 | 3.69 | 4.04 | 3.89 |
| 06/06/23 | 5.03 | 5.27 | 5.42 | 5.18 | 4.48 | 4.11 | 3.81 | 3.75 | 3.66 | 4.00 | 3.85 |
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 6/06/2023
The Silver Bullet to Maximizing Spreads
Most banks we talk with are experiencing a very similar issue, spreads are tightening because cost of funds are increasing. While this may be part of the issue to tightening spreads, it is not the only issue to take all the blame. The other side of the equation is what is happening on the asset side of the balance sheet. More specifically, loan pricing has stayed too low for too long. Over the last six to nine months, loans have been priced to match competition instead of priced to the broader market conditions. With Wall Street Prime currently at 8.25 percent, many lenders are finding it difficult getting borrowers to agree to the higher market rates. This issue is leading many bankers to look to “creative” ways to manage their cost of funds at what could be the highs of the market.
While we have the ability to help you understand the current market conditions as it relates to loan pricing using our Loan Builder tool on the www.bancpath.com website, we don’t have a silver bullet as it relates to current pricing on liabilities. We believe the silver bullet to maximizing spreads is establishing a prudent strategy to manage both the asset and liability sides of the balance sheet which takes discipline and foresight to be able to manage through rate cycles like we are experiencing now. We have the tools and expertise to help with longer-term strategy development for both sides of the balance sheet. While we can’t provide the silver bullet to solve your cost of funds dilemma now, we can help you by providing strategies that won’t compound your current issues. Please let us know how we can help by reaching out to your current CCB Capital Markets rep, or contacting amg@countryclubbank.com.
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