Bank Analysis School

Internal Use Only

Bond Prices (Values) Move Opposite Interest Rates

5%

0% 3%

10-Year Treasury Yield

4%

3%

-9% -6% -3%

Appreciation/Depreciation % of Bond Portfolio

2%

-14.01%

1%

-15% -12%

Internal Use Only

Securities Review – August 2022 Exam

Management invested heavily in long-term Municipal bonds in 2020 and 2021…