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09-14-20 Fiscal Affairs Committee Meeting
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09-14-20 Fiscal Affairs Committee Meeting
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9/10/2020 4:34:41 PM
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7/25/2025 11:54:47 AM
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City Meetings
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Fiscal Affairs Committee
Meeting Doc Type
Agenda Packet
Date
9/14/2020
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By Investment Type <br />By Investment Maturity <br />38% <br />2% <br />3% <br /><1% <br />23% <br />34% <br />95% <br />5% <br />Overnight12-24 Months <br />TexpoolLogicTexSTAR <br />24-36 Months <br />Texas CLASSAgency Notes <br />At the end of June, the 3-month T-Bill was at 0.16%; 2-year, at 0.19%; 5-year, at 0.34%; and, the 20-year was at <br />1.27%. As you can see below, rates along the entire yield curve dropped significantly over the last year. Last year, <br />the 3 month T-Bill was at 2.22%, the 2-year was at 1.81% and the 20-year was at 2.36%, which is a decline of nearly <br />1.63 percentage points on average across the curve. <br />Yield Curve <br />3.00% <br />2.00% <br />1.00% <br />0.00% <br />Treasury Bills <br />1 year ago3 months agocurrent <br />No changes have been made since the Fed cut the target rate to a range of 0% to 0.25%. The Committee’s stance <br />towards raising the target rate has not changed. FOMC Chair Jerome Powell stated the Fed “will do what we can <br />for as long as it takes” to aid economic recovery. Staff continues to closely monitor economic conditions, and the <br />strategy for the portfolio will, as always, focus on laddering to pick up yield along the curve and maintaining a <br />constant cash flow and liquid position. <br />2 <br /> <br />
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