Portfolio Managers Report: Time To Pick Up Tax Free Yield 05/22/24

Wednesday, May 22, 2024
MANAGING DIRECTOR: Scott Carrithers PORTFOLIO SALES AND SERVICE: Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino Natalie Regan • Aaron Stoffer • David Farris • Lonnie Harris • Brian Schaff • Jeff Macy Josh Kiefer • Tom Toburen • Todd Czinege

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
05/15/24	5.36	5.40	5.36	5.09	4.72	4.50	4.35	4.34	4.34	4.60	4.50
05/16/24	5.35	5.40	5.36	5.12	4.80	4.57	4.40	4.38	4.38	4.62	4.51
05/17/24	5.37	5.40	5.37	5.13	4.83	4.61	4.45	4.43	4.42	4.66	4.56
05/20/24	5.38	5.40	5.37	5.15	4.85	4.63	4.47	4.45	4.45	4.68	4.59
05/21/24	5.37	5.39	5.37	5.14	4.83	4.60	4.44	4.42	4.41	4.65	4.55

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 5/21/2024.

Time To Pick Up Tax Free Yield

Municipal yields relative to US Treasury yields – commonly referred to as muni ratios – have been on the low side of historical averages for much of the first half of 2024. This means that offered tax free bonds have been expensive compared to their taxable counterparts.

However, the tide is beginning to turn as supply and demand are slowly coming back into line. According to Bloomberg news, municipal new issues already total $171 billion year to date. That number is 35% higher than it was this time last year.

The Bloomberg US BQ GO AA index tracks exactly what it sounds like it does – bank qualified, general obligation debt rated AA-, AA and AA+. The 10 year tenor of this index is currently sitting at 72.3% of the 10 year US Treasury, which is an improvement from 68.5% one month ago.

Attractive tax free yields are ripe for the picking. Take a look at a sampling of CCB’s inventory below. We currently own and offer bonds well into the 80% of Treasury territory across a wide range of Midwest states. Please reach out to your representative with any interest or questions.

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.

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