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Friday, May 9, 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
05/02/25 4.29 4.32 4.25 4.01 3.83 3.81 3.92 4.11 4.31 4.81 4.79
05/05/25 4.31 4.32 4.24 4.03 3.83 3.82 3.94 4.13 4.35 4.85 4.80
05/06/25 4.30 4.31 4.22 3.99 3.77 3.75 3.90 4.09 4.30 4.81 4.84
05/07/25 4.28 4.32 4.22 4.01 3.78 3.75 3.86 4.05 4.27 4.78 4.77
05/08/25 4.29 4.33 4.25 4.07 3.88 3.86 3.99 4.17 4.38 4.87 4.85

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 5/8/2025.

                                                                                                                                                                                        

Municipal Market Update
 

Amid a backdrop of headline-driven market volatility and heavy new issue supply, municipal bonds underperformed all fixed-income categories in April.   Heightened uncertainty in early April caused substantial mutual fund outflows, the heaviest trading volume since March 2020, and a spike in muni yields of nearly 100 basis points.  Since then, yields have fallen back roughly 40 basis points, but on a relative basis are still offering better value than we’ve seen for several years.  

As shown in the graph below, AA bank qualified bonds in the 20-year range hit a ratio of almost 100% of Treasury yields at their peak in April and are now in the 90% range.  Traditionally, the summer months are stronger technical months for the municipal market as maturities and redemptions exceed new issue supply.   In addition, Individual investors have been showing renewed interest in 4.00%+ tax-free yields, creating increased demand.  If these trends continue, we anticipate municipals getting “richer” over the summer months and we encourage locking in current yields at ratios of 85% or better. 

Our favored structure continues to be higher coupon bank qualified bonds with calls in the 5 to 10-year range such as this Missouri bank qualified offering that we currently have in position:  
 

Please let us know if you wish to discuss, or if we can be of assistance with any of your portfolio needs. 



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