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Fed officials are optimistic about the overall economy and growth expectations for this year due to <br />government stimulus along with services opening as vaccinations ramp up. Treasury yields have <br />increased in the intermediate and long term from two years and beyond and have decreased in the <br />one -month through one-year terms. Three-month notes are yielding .03%, down from .09% at the <br />beginning of the year, and the 10-year notes are 1.74%, up from .93%. <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 10 yr 20 yr 30 yr <br />-111121 <br />-3/31/21 <br />Cities generally use a short -horizon benchmark such as the two-year Treasury Bill or some similar <br />measure, as of the beginning of the year the two-year T-bill was at 0.16%, up from 0.11%. Our <br />current portfolio yield is roughly 2.26%. <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. It is important the city <br />maintains a strong diversified portfolio prioritizing safety, liquidity, and flexibility in this market <br />environment. <br />Attachments <br />• Investment summary <br />