We are witnessing increasing interest rates so far in 2021

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Original Message:
Sent: 10/22/2021 9:50:00 PM
From: Neil Stanley
Subject: We are witnessing increasing interest rates so far in 2021

The FHLB Des Moines advance rates for 3-year terms are now (1.12%) which is more than twice what they were on January 5th (.49%).

For perspective, here are the current stats on this wholesale interest rate level since 1/1/2000:
- Low - .49%
- High - 7.63%
- 10th Percentile - .80%
- Median - 2.29%
- Average - 2.73%
- 90th Percentile - 5.21%

The current forward implied 3-year advance rate five years from now is 2.66%. This means that the market is pricing in additional interest rate increases. Is your financial institution prepared for the future?

Here is a link to graphics showing more of the historical forward implied yields over time since 1/1/2020. FHLB 3Yr Historical and Forward Implied Graphic