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The coronavirus pandemic, with record unemployment claims and stay-at-home orders, has <br />essentially put the brakes on the U.S. economy. The sharp decline in the economic activity resulted <br />in the worst quarterly performance since 2008 and market volatility remains. The Treasury Yield <br />curve has declined across all terms. Three-month notes are yielding 0.11% and the 10-year notes are <br />0.70%. A balanced portfolio allowing for flexibility, safety, and liquidity will be important in these <br />uncertain times. <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 />1mo 3mo 6mo 1yr 2yr 3yr 5yr 7yr 10yr 20yr 30yr <br />-12/31/19 <br />-3/31/20 <br />Cities generally use a short -horizon benchmark such as the two-year Treasury Bill or some similar <br />measure, as of the end of March the two-year T-bill was at 0.23% down from 1.58% the previous <br />quarter. Our current portfolio yield is roughly 2.29%. <br />Our primary reserve account is our 4M Fund which is a money market account where many cities <br />pool their funds. It currently yields 0.67% with daily withdrawal privileges. The city continues to <br />prioritize safety and liquidity to maintain a strong diversification portfolio in this market volatility <br />environment. <br />Attachments <br />Investment summary <br />