| Wednesday, January 24, 2024 |
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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 |
| 01/17/24 | 5.39 | 5.38 | 5.22 | 4.83 | 4.36 | 4.14 | 4.03 | 4.08 | 4.10 | 4.44 | 4.31 |
| 01/18/24 | 5.36 | 5.37 | 5.22 | 4.82 | 4.36 | 4.14 | 4.05 | 4.11 | 4.14 | 4.49 | 4.37 |
| 01/19/24 | 5.35 | 5.35 | 5.23 | 4.85 | 4.38 | 4.16 | 4.05 | 4.09 | 4.12 | 4.45 | 4.33 |
| 01/22/24 | 5.37 | 5.37 | 5.23 | 4.86 | 4.32 | 4.15 | 3.87 | 4.07 | 3.90 | 4.21 | 4.05 |
| 01/23/24 | 5.37 | 5.36 | 5.23 | 4.84 | 4.37 | 4.10 | 4.04 | 4.10 | 4.13 | 4.48 | 4.36 |
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 01/23/2024.
Time for the BancPath Year in review…
So what has been happening to your peers and competitors over the past 12 months?
Bond portfolios are shrinking, loan portfolios are growing, and the net asset growth is being funded through an increase in time deposits and borrowings, as deposit mix continues to shift from transaction to time (although this slowed dramatically in the 4th quarter).
The timeline for this review is interesting as last year-end was BEFORE the liquidity crisis sparked by the failure of SVB, Signature Bank and Republic, and before the implementation of the BTFP program.
So the large changes we see in the Y-o-Y analysis presented here were much subdued by the time we hit the 4th quarter of 2023, although changes are still being felt. 2024 promises to be challenging as well, although we believe it will be different from the liquidity challenges seen in 2023.
Margin pressure never seems to abate, due in large part to the increase in the overall COF relative to the slower increases seen in loan yields. The increase in offering rates on loans didn’t happen until the second half of 2023, while the increase in the COF offering rates occurred much earlier, and consistently throughout the year.
A section has been added on the loan mix (fix v. var.) suspecting a shift to fewer fixed rate loans throughout the year, but that doesn’t appear to be the case, as fixed rate percentage is down only slightly to 61.39% from 61.60% at the end of 2023.
Our team is happy to address any questions you may have on this and to take your suggestions on other data points you would like to see.
Thanks you for trusting us with your business.
For a larger view of the table below please click on this link:
BancPath Year in Review
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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