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Information #2 10-19-2020
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Information #2 10-19-2020
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12/23/2020 4:08:46 PM
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10/19/2020
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<br /> <br /> <br />It is reasonable to expect that higher than normal volatility within the financial markets, both up and <br />down, will continue as we approach the election and uncertainty remains around the coronavirus. <br />The Treasury Yield curve has decreased in the 1 month-7 year terms and increases slightly in the <br />longer 10-30-year terms. Three-month notes are yielding 0.10%, down from 0.16% the previous <br />quarter, and the 10-year notes are 0.69%, up from 0.66% from the previous quarter. A balanced <br />portfolio allowing for flexibility, safety, and liquidity will be important in these uncertain times. <br /> <br /> <br /> <br /> <br /> <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 September the two-year T-bill was at 0.13%, down from 0.16% the <br />previous quarter. Our current portfolio yield is roughly 0.96%. <br /> <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 0.02% 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 /> <br />Attachments <br />Investment summary <br />
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