Ada County treasurer warns lower short‑term yields cut investment income; portfolio impacts discussed
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Summary
Ada County’s treasurer’s office reported a year‑over‑year 60 basis‑point decline in short‑term yields, estimating about $600,000 less income per $100 million in cash‑like holdings and roughly $1 million lower revenue overall; the treasurer reviewed yield‑curve behavior, inflation, and Fed expectations.
Ada County’s treasurer’s office briefed commissioners on how recent market moves are affecting the county’s investment portfolio, saying a roughly 60 basis‑point decline in short‑term yields versus a year ago reduces earnings by about $600,000 for every $100 million kept in cash‑like instruments.
The treasurer’s office representative explained the portfolio mixes cash equivalents (money markets and LGIP) with longer‑duration investments. Although short‑term yields have fallen (for example, the 1‑month T‑bill moved from about 4.3% a year ago to about 3.66% on the day of the briefing), the longer end of the curve changed little; the 30‑year yield rose slightly. The treasurer estimated the county’s overall portfolio impact at close to $1 million less revenue versus last year.
The treasurer cited March month‑over‑month headline inflation (including food and energy) up about 0.9% and year‑over‑year core inflation figures, and noted geopolitical events affecting energy prices. On monetary policy, the treasurer said most economists expect the Federal Reserve to hold rates at the next meeting and the number of rate cuts projected for 2026 has been revised downward.
Commissioners thanked staff and noted that portfolio income feeds the county budget.
