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By Investment Maturity <br />By Investment Type <br />4% <br />4% <br />6% <br />35% <br />2% <br />22% <br />12% <br />88% <br />27% <br />Overnight1-12 Months12-24 Months24-36 Months <br />TexpoolLogicTexSTARTexas CLASSAgency Notes <br />At the end of June, the 3-month T-Bill wasat1.539%; 2-year, at2.998%; 5-year, at3.190%; and, the 20-year was <br />at3.484%. As depicted on the graph below, rates quickly rose from three months ago after the FOMC raisedthe <br />interest rateby half a percentagepoint in May followed by a three-quarters of a percentage point increase in <br />June. <br />Yield Curve <br />4.00% <br />3.00% <br />2.00% <br />1.00% <br />0.00% <br />Treasury Bills <br />1 year ago3 months agocurrent <br />The June FOMChike in thethe federal funds target rateincreased the target range to 1.50-1.75%. Inflation <br />continuesto be a concernas the CPI, at 8.6% year over year, is at the highest it’s been in 40 years. Overall <br />economic activityremains strong,and the unemployment rate remains low; however, fears of a recession are <br />rising. Ongoing rate increases are expected with the possibility that rates will be around 3.25%-3.50% at year end. <br />Staff continuesto closely monitoreconomic conditions, and the strategy for the portfolio will, as always, focus on <br />laddering to pick up yield along the curve and maintaining a constant cash flow and liquid position. <br />2 <br /> <br />