Friday, August 25, 2023 |
||||||||
|---|---|---|---|---|---|---|---|---|
|
MANAGING DIRECTOR: |
||||||||
|
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 |
| 08/18/23 | 5.35 | 5.43 | 5.48 | 5.34 | 4.94 | 4.65 | 4.38 | 4.34 | 4.25 | 4.56 | 4.37 |
| 08/21/23 | 5.38 | 5.43 | 5.50 | 5.37 | 5.00 | 4.71 | 4.46 | 4.43 | 4.34 | 4.64 | 4.44 |
| 08/22/23 | 5.37 | 5.43 | 5.47 | 5.39 | 5.04 | 4.75 | 4.48 | 4.43 | 4.32 | 4.60 | 4.40 |
| 08/23/23 | 5.37 | 5.45 | 5.50 | 5.36 | 4.97 | 4.65 | 4.37 | 4.30 | 4.19 | 4.48 | 4.27 |
| 08/24/23 | 5.38 | 5.46 | 5.52 | 5.40 | 5.02 | 4.70 | 4.41 | 4.35 | 4.23 | 4.50 | 4.30 |
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 8/24/2023
Don’t Lose Track of Municipal Yields
While many banks have been on the sidelines this year, tax-free municipal yields have been climbing higher and higher. In fact, we are experiencing the highest yields of the year and yields not seen since the peak of November 2022. See charts below that show the 5, 10, and 15 year municipals yields since 1/1/2022.
5 year AAA Yield Curve since 1/1/2022
Source: Bloomberg
AAA Yield Curve 10 year
Source: Bloomberg
AAA Yield Curve 15 year
Source: Bloomberg
Here is an example of a recent Kansas Bank Qualified issue.
Basehor, Kansas Unlimited Tax General Obligation - AA+ rated
| 9/1/2024 | 3.65 | 9/1/2034 | 3.40 |
| 9/1/2025 | 3.50 | 9/1/2035 | 3.50 |
| 9/1/2026 | 3.40 | 9/1/2036 | 3.60 |
| 9/1/2027 | 3.30 | 9/1/2037 | 3.70 |
| 9/1/2028 | 3.20 | 9/1/2038 | 3.80 |
| 9/1/2029 | 3.18 | 9/1/2039 | 3.85 |
| 9/1/2030 | 3.17 | 9/1/2040 | 3.90 |
| 9/1/2031 | 3.16 | 9/1/2041 | 4.00 |
| 9/1/2032 | 3.20 | 9/1/2042 | 4.05 |
| 9/1/2033 | 3.29 | 9/1/2043 | 4.10 |
| Indications Only, Subject to change and availability |
4% tax-free = 6.75 taxable equivalent yield for the highest earners
Even though banks have been inactive, the markets move on and several individuals have taken advantage of the 4%+ yields offered. Where do we go from here? Good question. The surplus of summer issues has helped push current yields higher but we may fall into a time period of lower supply and combined with higher demand, yields could get pushed back down. Don’t miss out on yields that often don’t stick around long. Whether for the bank or individually, these tax-free yields are getting some attention.
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