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Treasurer reports county portfolio and flags market volatility tied to tariffs and bond yields
Summary
Deschutes County Treasurer Bill Kim briefed commissioners on March financial conditions, saying markets have been volatile amid tariff news and unusual bond/stock moves; the county portfolio balance and yield trimmed slightly but remains within policy.
Bill Kim, Deschutes County treasurer, provided the March Treasurer’s Report to commissioners on April 21, describing national and local economic indicators and a month‑end portfolio review.
Kim told the board that recent headlines have been dominated by tariff discussions and unusual simultaneous moves in both stock averages and bond yields. He said the 10‑year U.S. Treasury yield fell to a recent low in early April and later rose; as of his morning report the 10‑year was trading near 4.38 percent. Kim said markets were debating the likely path of Federal Reserve policy and how tariff activity might affect growth.
On local portfolio metrics, Kim reported a month‑end portfolio balance of about $341 million, down roughly $23 million from February because of tax turnover and ongoing funding needs including courthouse construction. He said total portfolio yields were 3.96 percent in March, a slight decline from 3.99 percent in February, and that the county is keeping a somewhat higher level of short‑term liquidity because of federal funding uncertainty. The county’s weighted average maturity is 1.13 years and the maximum maturity position is about 3.25 years; Kim said those terms reflect timing of courthouse funding and noted the county is intentionally holding liquidity to buffer potential short‑term disruptions.
Kim also noted local housing market data for Deschutes County: Bend’s median single‑family price in March was reported near $748,000 with 122 sales and a high share of cash transactions; other market areas (Redmond, Sisters, Sunriver) showed differing volumes and medians. He said 30‑year mortgage rates had risen in the prior 30 days to about 6.89 percent, which affects housing starts and builder decisions.
Commission discussion touched on the county’s investment policy language and the investment advisory committee’s recent recommendation to correct contradictory policy statements about maturity limits. Kim said staff would return with recommended modifications to the investment policy language to align the written policy with current practice.
Kim recommended continued monitoring of short‑term liquidity and Fed action, noting uncertainty tied to fiscal and tariff developments. The treasurer’s report was informational and provided context for upcoming budget discussions and the county’s cash‑flow needs for capital projects.
