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money market accounts. We anticipate we will have two large tax settlements each year, <br />along with the regularly -scheduled debt service payments. <br />The Treasury yield curve has increased in short-term yields from March 31, 2017; however, <br />yields for longer term investments 5 years and beyond have decreased. Most recent <br />purchases have been credit quality certificates of deposits (CDs), which have been several <br />basis points over agencies with call features. Investing in shorter -term investments has <br />presented far fewer options since the decline in the commercial paper market. Three- <br />month notes are yielding 1.03% and the 10 -year notes are 2.31%. See the graphical <br />illustration below: <br />3.50% <br />3.00% <br />2.50% <br />2.00% <br />1.50% <br />1.00% <br />0.50% <br />0.00% <br />Treasury Yield Curve <br />1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 30 yr 20 yr 30 yr <br />—3/31/17 <br />—6/30/17 <br />Cities generally use a short -horizon benchmark such as the two-year Treasury Bill (6/30 — <br />1.38%, with an increase from 1.27% on 3/31) or some similar measure. Our current <br />portfolio yield is roughly 2.27% which is several basis points over the treasury yield <br />benchmark. <br />Our primary reserve account is our 4M Fund which is a money market account where many <br />cities pool their funds. It currently yields .7% with daily withdrawal privileges. The city <br />strives to maintain a strong diversification portfolio so liquidity and exposure risk are <br />reduced. <br />Attachments <br />• Investment summary <br />