Waking Up to Lower Rates
Last week was supposed to be a big one for the financial markets, though perhaps not quite the way...
Supply, Supply, Supply
Supply. The short-term markets will be inundated with Treasury bills in coming months as the Treasury refills its cash account,...
Crypto: The Genius Act and More
Crypto, stablecoins, blockchain. I’ve hesitated to introduce these subjects into my writing because I think they are largely a distraction...
What’s Behind the Decline in Growth of Public Funds Bank Deposits?
Bank deposits account for about 20% of the investment assets of state and local governments, a share that has declined...
Dashboard
Yield and portfolio information to help public funds investment officials manage portfolios, monitor markets and benchmark portfolio performance of local government investment pools (LGIPs) and short term portfolios.
Money Market Yields
Market Signals the Fed Will Resume Easing in September; Treasury Bills Provide Yield Insurance
The weak jobs report, other signs that the pace of economic expansion is slow, relief that prices are not rising as fast as feared and a rising drumbeat from Wall Street and the White House have raised the chances that the Federal Reserve will resume easing rates at its September meeting. If so longer-tenor Treasury bills provide a cost-effective way to insure income for the next six to 12 months. Sure there is an immediate give up vs. an LGIP
(or money fund) investment, but note (1) LGIP and money fund weighted average maturities remain in neutral territory and (2) the (back of an envelope) break-evens are met if the Fed cuts two times between now and April. Futures markets are signaling about four cuts.
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Waking Up to Lower Rates
Supply, Supply, Supply
Crypto: The Genius Act and More
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