Sector Update

April 11, 2022



A few points to start your week


Individual Sector Updates – Click to Access

Agency Market | Agency MBS | Agency ARM | Agency CMO | Municipal Market | SBA Market




Intermediate Treasurys, in March, posted worst single month return in over thirty years


Today – Equities largely negative, curve slightly steeper, oil down 3.7%


Five-Year Lookback: Loans/Deposits Ratio


Five-Year Lookback: Net Loans/Assets


Upcoming Webinars – (1 hour CPE available, registration opens 2 weeks prior to each webinar)

2/22 Bank: Positioning the Investment Portfolio for Performance ( slides | webinar replay )

2/24 Credit Union: Positioning the Investment Portfolio for Performance ( slides | webinar replay )

3/8 Bank: Balance Sheet Strategies in an Expected Tightening Cycle ( slides | webinar replay )

3/10 Credit Union: Balance Sheet Strategies in an Expected Tightening Cycle ( slides | webinar replay )

4/7: 2nd Quarter Economic Outlook Webinar ( slides | webinar replay )

4/12 Bank: Interest Rate Swaps, Not Just for Hedging (open for registration)

4/14 Credit Union: Interest Rate Swaps, Not Just for Hedging (open for registration)

5/10 Bank: Balance Sheet Management and Your Loan Portfolio

5/12 Credit Union: Loan Participation Market Overview


Treasury yields higher, curve flatter to begin 2022, 2-, 3-, and 5-year “un-inverted” last week as curve turned steeper


Yield on 2- and 3-year approaching a 200 bps move higher in 2022


Yield on 5-year +153 bps and 10-Year +124 bps Year-to-Date



Curve Shape – 2s5s currently at 26 bps, very flat for this point in a rate cycle


Curve Shape – 2s10s “un-inverted” last week, currently at 23 bps, very flat for this point in a rate cycle


Mortgage rates continue their climb


Majority of active coupons trading at a discount



What We’re Reading


Market Today | Daily

Weekly Recap | Weekly, Friday

Monthly Review (February) | Monthly, 1st business day

Brokered Deposit Rate Indications | Weekly, Monday

Investment Alternatives Matrix | Weekly, Tuesday

MBS Prepay Commentary (April) | Monthly, 5th business day

SBA Prepay Commentary (March) | Monthly, 10th business day


WSJ: Bank Deposits Could Drop for First Time Since World War II

“The industry has $8.5 trillion more in deposits than loans, according to Barclays analysts. While loan demand is expected to increase, and the banks need deposits to fund the lending, that is more than enough.”


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