Implications Of SVB / Signature Bank Failures

Infinityy | Mar 13, 2023 | 107 posts since 2020

Expect to see some good brokered CD deals this week as banks look to boost their liquidity position. I'm already seeing the following at Fidelity (non-callable)

3 months 5.00%

6 months 5.05%

1 year 5.3%

18 months 5.4%

2 year 5.25%

3 year 5.00%

5 year 4.80%

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Steve58 | Mar 13, 2023 | 460 posts since 2018

The 10 year treasury dropped around 6% Friday. Best longer term brokered CDs mostly went down 0.05% from Thursday to Friday. I think continued banking issues will see longer term rates drop. Shorter terms may rise though.

Sounds like the banking problem is fast rising rates which are causing a lot of losses on bond holdings. Runs on the banks are making the banks sell these assets at a large loss. So I can see Fed holding off rate increases.
Of course, I could be way off base.

sams1985 | Mar 13, 2023 | 781 posts since 2022

I wouldn't count on that...with the Treasury yields dropping like a rock on Friday, brokered CD deals will likely disappear if that trend continues as they follow Treasury yields pretty closely.

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