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

June Jobs Report: The Fed Will be in No Hurry to Cut

The June jobs report raised eyebrows as it suggested persistent job market strength could push off the Federal Reserve’s plan to ease rates.  Indeed this view is now expressed in federal funds futures contracts.  The above chart, originally published prior to the jobs report, has been updated with post-report trading   of federal funds futures in coming months.  Between the end of May and beginning of July, amid signs of a slowing economy and the drumbeat of President Trump for lower rates, markets had priced in a steeper path. (Note the difference between May 28 and July 2 levels.) This is now largely reversed for near-term points (the January and March Federal open Market Committee meetings).  While the market response to the jobs report pushed back the timing of cuts, the ultimate result, a year from now, remains about 3.25%, 100 basis points below the current level.

 

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Insights

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 in the recent years as local government investment pools and direct investment in Treasuries has grown. This concentration understates the importance of banks for smaller governments where deposits are often the only way to make […]

A New Bank Capital Rule: Why it Matters

In a nation of more than 4,500 depository institutions, why should it matter that Federal regulators have proposed a narrow rule that applies only to eight? The rule, proposed at the end of June by the Federal Reserve and other bank regulators, would ease the requirement that the largest banks maintain a capital buffer, with […]

Halftime: The Score for Public Funds Investments as of June 30

The first half of 2025 has been kind to public funds investors, delivering solid returns on short-term cash and historically high returns on longer-duration separate accounts. LGIP returns, while somewhat lower than in 2024, were close to generation highs, benefitting from the fact that the Federal Reserve has maintained an elevated federal funds rate. Individual […]

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