Chief Financial Officer's (CFO) Report to the Board
DIF Balance Sheet - First Quarter 2017
|Fund Financial Results||($ in millions)|
Cumulative Quarter-End Unrealized Gain on U.S. Treasury Securities, Net (dollars in millions)
|Quarter||Unrealized Gain on U.S. Treasury Securities, net|
The unrealized gain on U.S. Treasury securities dropped dramatically beginning in November 2016. Following the election results earlier that month, Treasury yields increased considerably, as investors perceived that future fiscal policies and programs could result in faster economic growth, higher inflation, and increased Treasury security issuance, all of which would underpin higher interest rates and Treasury yields. The higher Treasury yields in late 2016 and year-to-date 2017 resulted in lower market prices for the investments and the correspondingly lower unrealized gains.