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In efforts to reduce inflation, the Federal Reserve's rate hike in June is slowing the growth and the <br />tighter financial conditions have impacted the decline in retail sales, home sales, and commodity <br />prices. The large rate hike increased market concerns of a recession and lower corporate earnings. <br />Treasury yields have increased across the board with the 1 month to 1-year terms seeing the greatest <br />increases. <br />4.00% <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 10 yr 20 yr 30 yr <br />3/31/22 <br />6/30/22 <br />Cities generally use a short -horizon benchmark such as the two-year Treasury Bill or some similar <br />measure, as of 6/30/22 the two-year T-bill was at 2.92%, up from 2.28% at 3/31/22. Our current <br />portfolio yield is roughly 3.59%. <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 .916% 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 />