| Wednesday, June 21, 2023 |
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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 |
| 06/12/23 | 5.17 | 5.23 | 5.36 | 5.23 | 4.58 | 4.23 | 3.90 | 3.82 | 3.74 | 4.05 | 3.88 |
| 06/13/23 | 5.12 | 5.22 | 5.34 | 5.22 | 4.67 | 4.28 | 3.99 | 3.89 | 3.82 | 4.10 | 3.92 |
| 06/14/23 | 5.06 | 5.24 | 5.34 | 5.23 | 4.68 | 4.29 | 3.99 | 3.89 | 3.78 | 4.07 | 3.88 |
| 06/15/23 | 5.06 | 5.21 | 5.31 | 5.18 | 4.64 | 4.24 | 3.91 | 3.81 | 3.71 | 4.01 | 3.83 |
| 06/16/23 | 5.11 | 5.22 | 5.33 | 5.23 | 4.72 | 4.31 | 3.99 | 3.87 | 3.77 | 4.05 | 3.85 |
| 06/20/23 | 5.10 | 5.23 | 5.34 | 5.23 | 4.69 | 4.29 | 3.95 | 3.84 | 3.72 | 4.00 | 3.81 |
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 6/20/2023
Jeffrey Gundlach Is Sticking To His Guns
Jeffrey Gundlach is the cofounder of mutual fund company, DoubleLine Capital, which manages more than $140 billion in assets and has grown with Gundlach’s reputation as the “Bond King” in a post Bill Gross era. A renowned trader, he is celebrated for his prescient market calls and correctly forecasting the housing crash in 2007.
On the heels of last week’s FOMC decision which left overnight interest rates unchanged, Gundlach announced that he still expects a US recession will start in a few months and he hasn’t changed his gameplan. He’s sticking to his guns and describes the overall state of the US economy as weak. Gundlach argues that financial headwinds continue to batter growth prospects.
While this is worrisome news for equity investors, it’s a clear call to extend duration in bond portfolios. And this is where Gundlach has earned his reputation as a savvy investor who peers past the current landscape to catch a glimpse of what is to come. He sees yields headed lower across the curve. If this proves correct, the recently swelling voice of advisors urging investors to wait it out in money market funds will be a failed strategy. For when the cuts come, they’ll reprice the short end immediately and money market income will sink with the receding tide.
Despite Gundlach’s warning, some investors might favor the ready liquidity of a money market instrument. Is there a “better mousetrap” for them? We think there is. A short US Treasury ladder seems well-suited for the challenge. With the benefit of an explicit marketplace which offers top-drawer liquidity, and the attractive nominal yield unencumbered by management fees, this is a bullet-proof option.
This Treasury portfolio compares well vs. any govt money market fund. Producing regular cashflow, durable income and the flexibility to hold or sell at any time, this six month average maturity (and shrinking) portfolio is the “easy button” equivalent to a typical money market fund. Please call your CCB Capital Markets representative today if you’d like to assemble something similar with taxable or tax free securities.
On the heels of last week’s FOMC decision which left overnight interest rates unchanged, Gundlach announced that he still expects a US recession will start in a few months and he hasn’t changed his gameplan. He’s sticking to his guns and describes the overall state of the US economy as weak. Gundlach argues that financial headwinds continue to batter growth prospects.
While this is worrisome news for equity investors, it’s a clear call to extend duration in bond portfolios. And this is where Gundlach has earned his reputation as a savvy investor who peers past the current landscape to catch a glimpse of what is to come. He sees yields headed lower across the curve. If this proves correct, the recently swelling voice of advisors urging investors to wait it out in money market funds will be a failed strategy. For when the cuts come, they’ll reprice the short end immediately and money market income will sink with the receding tide.
Despite Gundlach’s warning, some investors might favor the ready liquidity of a money market instrument. Is there a “better mousetrap” for them? We think there is. A short US Treasury ladder seems well-suited for the challenge. With the benefit of an explicit marketplace which offers top-drawer liquidity, and the attractive nominal yield unencumbered by management fees, this is a bullet-proof option.
This Treasury portfolio compares well vs. any govt money market fund. Producing regular cashflow, durable income and the flexibility to hold or sell at any time, this six month average maturity (and shrinking) portfolio is the “easy button” equivalent to a typical money market fund. Please call your CCB Capital Markets representative today if you’d like to assemble something similar with taxable or tax free securities.
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