HomeMy WebLinkAbout70887 (2)�
2014
City of Palm Desert
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ECONOMIC COMMENTARY
February was a relatively quiet month for U.S. Treasuries, except for the closing
days of the month when Russian military intervention in Ukraine brought more
buyers into the market, putting downward pressure on Treasury yields.
Severe winter weather took a heavy toli on U.S. economic growth. Fourth
Quarter 2013 U.S. Gross Domestic Product ("GDP") was revised downward
from 3.2% to 2.4%. Some private economists be�ieve #hat First Quarter 2014
GDP will be even weaker, coming in below 2%. In certain parts of the U.S.,
consumer spending, construction, home sales, and industrial operations
were disrupted by the coldest weather since 1912. In the West, drought
reduced agricultural production in many areas, and raised prices for some crops.
The U.S. labor market remains siuggish. Aithough nonfarm payrolls rose from
129,000 (January revised) to 175,000 (February), the latter was below the prior
12-month average of 189,000 jobs. Edward Lazear, a Stanford University
Business professor and a former Chairman of the President's Council of
Economic Advisers (2006-2009), contends that the number of total hours
worked is a better measure of labor market strength and economic activity
than the number of people employed. Lazear believes that real labor usage
has fallen by the equivalent of 100,000 jobs since September. W hile there
has been an increase in jobs, there has also been a decrease in the number
of total hours worked.
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City Treasurer
" Certified California Municipal Treasurer
PORTFOLIO STATISTICS
Thousands of Dollars
Month-End Book Value
Month-End Market Value
Paper Gain (Loss)
Prior Year Book Variance
Interest Earnings
Yield-To-Maturity
Weighted Maturity (Days)
Effective Duration
$
$
$
$
$
220,165 $
220,165 $
- $
18,825 $
46 $
0.29%
1
0.00
213,310 $
213,310 $
- $
15,125 $
48 $
0.29%
1
0.00
208,660
208,660
16,574
47
0.28%
1
0.00
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Markets Team
City Treasurer
Paul S. Gibson, C.C.M.T.
Deputy City Treasurer
Thomas W. Jeffrey, J.D., M.B.A.
Investment Obiectives
The treasurer shall invest all
public monies in a manner
that ensures safety of
principal; sufficient liquidity
to finance the City's
expenditures; and the
highest yield possible after
the previous two objectives
have been met.
$ 201,302 $ 202,645 $
$ 201,302 $ 202,645 $
$ - $ - $
$ 6,521 $ 7,589 $
$ 49 $ 53 $
0.30% 0.31 %
1 1
0.00 0.00
204,899
204,899
5,909
51
0.30%
1
0.00
All data as of February 28, 2014