Why are Treasury Yields Rising?
The 5-Year U.S. Treasury yield rose about 0.35% in September. Inflation expectations, as represented by the Break even yield, rose only 0.08%. The difference between these two measures is the Real yield on Treasury Inflation Protected Securities (TIPS). With inflation expectations gradually declining over the past year, there is another reason for the rise in Treasury yields. Continue Reading…
PMA, a premier full-service provider of financial and advisory services to local governments, is pleased to announce that Dr. Paul Ziegler has joined the team as Coordinator of Investment Services as of October 2, 2023. He will partner with the Missouri Capital Asset Advantage Treasury (MOCAAT) to serve school districts and other political subdivisions throughout the state of Missouri. Paul’s exceptional experience and commitment will allow MOCAAT to further its relationship as a trusted partner to local Missouri school districts. Continue reading..
Over a decade of low short-term rates led to complacency for depositors and banks with respect to deposits. The deposit crisis of March 2023 alerted the broader market to the slow burn of core deposits – outflows that preceded the frenzy – either slowly getting reallocated to higher yielding money markets or customers spending down saved stimulus. Continue Reading…
The recent joint actions by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the Treasury Department ensure that all depositors at the two institutions that were recently closed (Silicon Valley Bank in California and Signature Bank in New York) can access their funds with no interruptions. Continue Reading…
Slow Train Coming
As we enter the second half of 2023, the economy has remained surprisingly resilient despite the massive tightening in monetary policy and higher borrowing costs. Consumers continue to spend aggressively, buoyed by full employment and rising wages, despite materially higher prices for goods and services. Continue Reading…
Recent News: Banks Utilize Cautious Investment Approach
U.S. commercial banks were hesitant to deploy their cash into securities in the third quarter as securities fell 3.7% from the prior quarter, declining to 25% of assets from 26% the prior quarter, according to S&P Global Market Intelligence. Continue reading…