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Ada County treasurer reports portfolio yield around 4.15% and strong January interest
Summary
The treasurer's office reported an average portfolio yield of approximately 4.15% and interest receipts of about $800,000 for January; the county continues to hold a large cash position and reinvest matured funds at higher yields.
The Ada County treasurer's office gave its monthly investment report on Feb. 18, reporting an average portfolio rate of about 4.15 percent and total interest receipts for January of a little more than $800,000.
A banking and finance manager explained that recent federal economic data — nonfarm payrolls that came in below estimates and a slightly higher-than-expected consumer price index — have led the Federal Reserve to hold interest rates in the near term. That environment has allowed the county to benefit from higher yields in cash and short-term investments.
The treasurer's office said it made one purchase during the month at a slight discount; the coupon rate on the purchase is 3.5 percent but the yield-to-maturity is a little over 4 percent because of market pricing and redeployed capital from a December maturity.
Commissioners noted the county budgeted roughly $5 million in investment income for the fiscal year and that, to date, the county is close to budgeted levels for investment revenue.
