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Oregon Short Term Fund

Oregon Short Term Fund

The Oregon Short Term Fund, known as the OSTF, is managed by the Oregon State Treasury to keep taxpayer dollars safe and to help governments of all sizes to stretch public funds.

The OSTF enables governments to earn a rate of return on money between when revenue is received and when the money is needed to pay bills. The rate is determined by Treasury staff based on market conditions and yield for fixed income securities such as government and corporate bonds.

Because the OSTF is made up of government operating money, it is invested in U.S. dollar–denominated, high-quality, short-term fixed income securities. It is not invested in the stock market. The primary objectives of the OSTF investment activities, in priority order, are preservation of principal, liquidity, and yield.

All state agencies and certain public universities participate in the fund. Local governments, such as school districts and counties, and tribal governments have the option to access the fund by participating in the Local Government Investment Pool. Roughly 1,000 local governments participate.

The fund is managed for three priorities, in this order: Preservation of capital, liquidity, and yield.

Interest Rates Paid on Account Balances in the OSTF

Interest is accrued on interest bearing accounts based on the end of day balance of the account times the rate for that day, divided by the number of days in the year. Accrued interest is distributed on the last day of the month and includes interest accrued for the last day of the month.

The following table reflects the changes in the interest rate paid:

November 15, 2019 2.25%
September 24, 2019 2.45%
August 9, 2019 2.60%
December 24, 2018 2.75%

October 1, 2018

2.50%

June 18, 2018

2.25%

March 23, 2018

2.10%

January 24, 2018

1.85%

December 18, 2017

1.70%

November 1, 2017

1.55%

June 30, 2017

1.45%

March, 20, 2017

1.30%

January 1, 2017

1.15%

September 26, 2016

1.03%

July 27, 2016

0.92%

May 25, 2016

0.875%

February 24, 2016

0.75%

January 11, 2016

0.67%

December 7, 2015

0.60%

June 8, 2015

0.54%

November 20, 2014

0.50%

February 4, 2013

0.54%

March 22, 2012

0.60%

October 28, 2010 to March 21, 2012

0.50%

January 29, 2010 to October 27, 2010

0.55%

The following are the average daily rates paid during the month:

November 2019

2.3433%

October 2019

2.4500%

September 2019

2.5650%

August 2019

2.6387%

July 2019

2.7500%

June 2019

2.7500%

May 2019

2.7500%

April 2019

2.7500%

March 2019

2.7500%

February 2019

2.7500%

January 2019

2.7500%

December 2018

2.5645%

Time Certificates of Deposit Program

One way that Treasury helps to invest in Oregon communities is through voluntary Time Certificate of Deposits, also known as TCDs. The Short Term Fund will buy short term CDs from qualified institutions that make orders. The funds – Treasury has a goal of making at least $200 million available -- can then be used by the requesting institutions to make more loans within their communities.

The program is authorized under ORS 295.081. The transaction occurs each month on the “order date.” On that order date, Treasury will identify the rates and durations for CDs, which can be for 3-, 6- or 12-month maturities.

For more information including the calendar of TCD sales dates, please contact Angela Schaffers at (503) 431-7900.  

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