Chief Financial Officer's (CFO) Report to the Board
Fund Financial Results | ($ in millions) |
|

Treasury Yields: Current and Historical |
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3/31/2019 (current) |
02/28/2019 (1 month ago) |
03/31/2018 (1 year ago) |
|
---|---|---|---|
1M | 2.43 | 2.41 | 1.62 |
3M | 2.39 | 2.44 | 1.71 |
6M | 2.43 | 2.50 | 1.92 |
1Y | 2.39 | 2.54 | 2.09 |
2Y | 2.26 | 2.52 | 2.27 |
3Y | 2.21 | 2.50 | 2.38 |
4Y | 2.23 | 2.51 | 2.50 |
5Y | 2.23 | 2.51 | 2.56 |
6Y | 2.29 | 2.58 | 2.65 |
7Y | 2.31 | 2.62 | 2.69 |
8Y | 2.35 | 2.66 | 2.72 |
9Y | 2.38 | 2.70 | 2.74 |
10Y | 2.41 | 2.72 | 2.74 |
The Treasury yield curve is now inverted reflecting concerns about economic growth both in the U.S. and internationally. The short end of the curve is anchored due to the current Fed Funds Target which is set to 2.25-2.50%. The inversion which starts in the 6-month sector became stronger in February and reflects growing concerns for a mild recession in 2020 and market speculation that there will be no Fed rate hikes and even the possibility of a cut in the next year. At the same time, inflation remains muted which is keeping yields for the longer maturity sectors down and fairly flat.