HomeMy WebLinkAbout71143 (2)2014
ECONOMIC COMMENTARY
City of Palm Desert
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The Federal Open Market Committee (FOMC) met on April 30, and cut another
$10 billion from its bond buying program, reducing bond purchases to $45 billion
per month. The FOMC also reaffirmed that short-term interest rates would remain
near zero for a considerable time after the Fed ends its bond buying program in
late 2014.
Global bond rates plunged as skeptical investors sought refuge from sluggish
U.S. and European economies. The yield on a 10-year U.S. Treasury Note fell to
2.52% -- the lowest levei this year. Despite years of monetary stimulus, the U.S.
housing market remains relatively depressed; hiring has not picked up; and
inflation is well below expectations.
First quarter U.S. economic growth was worse than expected. Although originally
estimated at 0.1 %, many economists believe that this figure will be lowered to
show a contraction in economic activity. Business investment, government
spending, and exports continue to lag. Higher home prices, higher interest rates,
and tighter lending standards have led to a slowdown in housing. Wells Fargo
Securities reports that homeownership has fallen to its lowest level in 30 years.
Stagnant wage and job growth play a key role in this. Finally, a new study from
the Brookings Institute suggests that the U.S. economy is less entrepreneurial
than at any point in the last 30 years, with businesses being destroyed at a faster
rate than they are being created.
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Ciry Treasurer
" Cerfified California Municipal Treasurer
Thousands of Dollars
Month-End Book Value $
Month-End Market Value $
Paper Gain (Loss) $
Prior Year Book Variance $
Interest Earnings (W!O Cash; $
Yield-To-Maturity
Weighted Maturity (Days)
Effective Duration
218,499
218,499
18,738
50
0.29%
1
0.00
Markets Team
City Treasurer
Paul S. Gibson, C.C.M.T.
Deputy City Treasurer
Thomas W. Jeffrey, J.D., M.B.A.
Investment
The treasurer shall invest ali
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.
PORTFOLIO STATISTICS
.
$ 217,385 $ 220,165 $ 213,310 $ 208,660 $
$ 217,385 $ 220,165 $ 213,310 $ 208,660 $
$ - $ - $ - $ - $
$ 19,442 $ 18,825 $ 15,125 $ 16,574 $
$ 53 $ 46 $ 48 $ 47 $
0.31 % 0.29% 0.29% 0.28%
1 1 1 1
0.00 0.00 0.00 0.00
All data as of April 30, 2014
201,302
201,302
6,521
49
0.30%
1
0.00