| Wednesday, May 17, 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 |
| 05/10/23 | 5.45 | 5.22 | 5.09 | 4.71 | 3.91 | 3.58 | 3.39 | 3.41 | 3.44 | 3.87 | 3.80 |
| 05/11/23 | 5.46 | 5.16 | 5.09 | 4.74 | 3.90 | 3.56 | 3.36 | 3.36 | 3.39 | 3.82 | 3.74 |
| 05/12/23 | 5.49 | 5.17 | 5.11 | 4.76 | 3.99 | 3.66 | 3.45 | 3.46 | 3.47 | 3.88 | 3.79 |
| 05/15/23 | 5.56 | 5.13 | 5.15 | 4.77 | 4.01 | 3.67 | 3.47 | 3.49 | 3.51 | 3.93 | 3.84 |
| 05/16/23 | 5.51 | 5.17 | 5.22 | 4.90 | 4.09 | 3.75 | 3.53 | 3.53 | 3.54 | 3.95 | 3.86 |
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 05/16/2023
Bank Failures and Liquidity
Over the last many weeks there has been a lot of “hand wringing” over the state of banking, especially banks like yours and ours that are definitely NOT “too big to fail”. While the issues at some of these super regionals may appear to be isolated events, regulators are keenly aware of the problems this lack of liquidity poses and will be focused like a laser beam on this through the next exam cycle.
Here are some things you should be doing in preparation both for exams and for further education of your staff and board:
- Stress test your liquidity. If you are on the BancPath ALM model, you already receive, free of charge, a workbook to stress your liquidity. If you are not on the BancPath model, send us a note and we will show you how you can join.
- Know your large depositors. Run a large depositor report and understand the exposures you may have to your top 50-100 depositors. What percent of total deposits do these accounts represent? Formulate a plan to communicate the strength of your organization if necessary.
- Update your Contingency Funding Plan (CFP). If you have not tested your available lines, do so in the next 30-90 days, and annually thereafter. Document these tests, and be sure to include them in your ALCO Minutes.
- Assumptions Stress Tests. Now you can stress your assumptions independent of the model and keep the results on your network for future exams.
- Capital Plan. We give you the ability to project growth and see the impact that will have on your capital over the next 5 years.
- Scenario Back Test. You can back test the model results based on the change in rates and you can select from a 3 month to a 12 month back test for this. You can find this in the Audit Report Packet.
4. Deposit Strat Report. While this is not necessarily new, it is useful especially as we plan for projected
increases in transaction account rates and how we might best stratify those over various tiering
strategies.
5. We add new analysis as we get feedback from our clients, so if you have an idea, please don’t hesitate
to ask, if we can do that for you we will.
increases in transaction account rates and how we might best stratify those over various tiering
strategies.
5. We add new analysis as we get feedback from our clients, so if you have an idea, please don’t hesitate
to ask, if we can do that for you we will.
As always, thank you for the confidence you have shown in us and we look forward to weathering the storm with you. Let us know how we can help.
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