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Maturities: Issuer Par Value Maturity Date Coupon (%) Yield (%) Federal National Mortgage Assn. 2,000,000 4/29/2019 1.25 1.25 Federal Farm Credit Bank 500,000 4/30/2019 1.22 1.31 Federal Farm Credit Bank 1,000,000 5/1/2019 1.08 1.36 Freddie Mac 2,000,000 5/30/2019 1.10 1.10 Federal Home Loan Bank 1,000,000 6/14/2019 1.63 1.00 Federal Home Loan Bank 2,000,000 6/14/2019 1.63 1.44 Federal National Mortgage Assn. 700,000 6/24/2019 1.20 1.49 Federal National Mortgage Assn. 825,000 6/27/2019 1.25 1.06 Total $ 7,525,000 Callable (matured) Bonds: Issuer Par Value Called Date Coupon (%) Yield (%) Federal Farm Credit Bank 2,000,000 4/1/2019 2.95 2.97 Federal Farm Credit Bank 1,710,000 4/9/2019 2.87 2.92 Federal Home Loan Bank 2,000,000 4/18/2019 3.36 3.37 Federal Farm Credit Bank 2,000,000 5/8/2019 3.05 3.05 Federal Farm Credit Bank 2,000,000 6/14/2019 2.74 2.74 Freddie Mac 2,875,000 6/20/2019 3.00 3.00 Federal National Mortgage Assn. 2,000,000 6/26/2019 2.70 2.71 Freddie Mac 2,000,000 6/28/2019 3.25 3.25 Total $ 16,585,000 CURRENT INVESTMENT STRATEGY: The effective rate of return for the recent month on the portfolio remained to 2.04% due to a mix of investment strategy. Staff faces with the recent Federal Reserve policy changes to ease monetary policy by cutting the target funds rate by 25 basis points. The policy change signals that the economy would continue to weaken in the near future and staff expects one more rate cut within this calendar year. Staff continues to invest in a longer term securities to secure the interest rate and matches maturities with future cash needs. While short-term yields are highly sensitive to the Federal monetary policy, longer-term yields are more influenced by growth and inflation expectations. This strategy increased the average days to maturity (ADM) to 744 days as of June 30, 2019 to capitalize the rate cuts as widely expected. Additionally, staff is balancing the portfolio's credit exposure to pick up incremental yields while complying with the City's investment policy's mandate of safety, liquidity, and yield. This strategy is expected to be continuously monitored during the next fiscal year.