TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 19, 2026
COMMITTEE ON FINANCE
Mr. John P. Murray, Executive Director
Title
Report on investments purchased during February 2026
Body
Dear Sir:
Attached is a report indicating the investments made in securities and overnight money market funds for the various District Funds during the month of February 2026.
During the month, 16 individual investments were made with a total par value of $108,000,000.00 at an average annual yield of 3.64%; the interest income to maturity of these investments is $1,500,740.80. Additionally, 11 investments were made in Money Market Funds during the month, with a par value of $82,180,786.49 at an average annual yield of 3.29%.
The U.S. economic activity continues to expand at a solid pace despite global inflationary pressures and volatility. The unemployment rate has moderately stabilized. Inflation remains somewhat elevated. In response, the Federal Reserve decided to maintain the target for the federal funds at a range of 3.50-3.75%. The Fed is expected to continue to gradually cut interest rates to reach its inflation objective of 2%. Target rates are expected to remain elevated in the near term.
In response to high short-term interest rates and delayed property tax receipts, the District has been more conservative in its investment strategy. Treasury is maintaining a balanced approach in its investment activities by continuing to purchase a diversified mix of investments to meet funding needs to cover debt service, payroll, and other operating expenditures. All decisions are based upon the best option available on the date of investment, given the District’s investment time horizon, investment constraints, and adherence to the Investment Policy. Maturities of investments purchased to date comprise a diversified selection of safe, liquid, and competitive rate investments. As of this report, money market instruments, commercial paper and government agency securities provide the most competitive yields for the District’s short- and long-term investment requirements.
Respectfully Submitted, Steven J. Lux, Treasurer, SJL:ehh
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