Liquidity Fund Monthly

EUR Liquidity LVNAV Fund

European Central Bank: The ECB left their policy rates unchanged while acknowledging upside risks to inflation.

Market Rates: The EURIBOR curve steepened – the 12-month rate rose from -0.07% to 0.17%, with the one-month rate barely changed at -0.54%. *

Macro: Eurozone inflation ticked up to 7.5% in April, but there was a bigger rise in core inflation from 2.9% to 3.5%.

ECB Deposit Facility Rate: -0.50%
1-month Fund Yield (Gross): -0.57%
1-month Fund Yield (Net): -0.70%**

GBP Liquidity LVNAV Fund

Bank of England: There was no Monetary Policy Committee meeting in April, keeping the bank rate unchanged at 0.75%.

Market Rates: Rates rose again, with the 1-month ICE Term SONIA rate rising from 0.69 to 0.93% and the 3-month rate increasing from 0.92% from 1.11%. *

Macro: Headline annual inflation increased to a new 30-year high of 7.0% in March, topping consensus expectations of 6.7%.

Bank Base Rate: 0.75%
1-month Fund Yield (Gross): 0.55%
1-month Fund Yield (Net): 0.58%**

USD Liquidity LVNAV Fund

Federal Reserve: In the absence of an FOMC meeting in April, the fed funds target rate was unchanged at 0.25%-0.50%.

Market Rates: As markets priced in more Fed hikes, rates rose across the LIBOR curve. The 3-month rate rose from 0.96% to 1.33%, with the 12-month rate up from 2.10% to 2.63%.

Macro: US headline inflation climbed ever higher, hitting 8.5% in March on rising food and energy costs – up from 7.9% a month earlier.

Fed Fund Target Rate: 0.25% - 0.50%
1-month Fund Yield (Gross): 0.29%
1-month Fund Yield (Net): 0.30**

USD Treasury Liquidity Fund

Federal Reserve: Rates were unchanged but markets began pricing in half percentage point hikes for the next two FOMC meetings.

Market Rates: As short-term market rates rose, the 1-month US Treasury Bill yield increased from 0.12% to 0.33% in April

Macro: Personal Consumption Expenditures (PCE), the Fed’s preferred inflation measure, rose to 6.6% year-on-year.

Fed Fund Target Rate: 0.00% - 0.25%
1-month Fund Yield (Gross): 0.19%
1-month Fund Yield (Net): 0.11%**