The Oklahoma State Treasurer’s Office released its July 2026 Investment Report, showing continued stability in the state’s investment portfolio as financial markets adjusted to rising long-term Treasury yields, mixed equity performance and ongoing inflation concerns.
The state’s investment portfolio reached $18.0 billion in July, an increase of approximately $200 million from July 2025. The portfolio earned a 3.80% yield, up from 3.71% one year earlier, with a weighted average maturity of 908 days.
“July’s portfolio performance reflected continued stability as markets responded to changing economic conditions,” said State Treasurer Todd Russ. “Our balanced and disciplined investment strategy continues to provide stability while positioning the state to earn competitive returns.”
U.S. Treasurys continued to make up the majority of the state’s portfolio at 76.1%, followed by money market mutual funds at 11.3% and mortgage-backed securities at 10.5%. The remaining investments included state and foreign bonds, U.S. government agencies and certificates of deposit.
Financial markets were mixed in July. The Dow Jones Industrial Average gained 0.3%, while the S&P 500 declined 0.1% and the Nasdaq Composite fell 3.2%. Rising Treasury yields contributed to a shift away from technology stocks and toward financial, energy and other value-oriented sectors.
Treasury yields rose sharply at longer maturities during the month. The 10-year Treasury yield increased to 4.74%, while the 30-year yield reached 5.27%, its highest level since 2007. The shift reflected continued concerns about inflation and expectations that interest rates could remain elevated.
The Federal Reserve held the federal funds rate steady at 3.50% to 3.75% during its July meeting, though three members dissented in favor of a quarter-point increase. The Federal Open Market Committee continued to cite inflation remaining above its 2% target.
Economic data showed a mixed picture. Nonfarm payroll employment declined by 23,000 in July, while the unemployment rate edged down to 4.1%. At the same time, inflation moderated for a second consecutive month, with the Consumer Price Index increasing 3.4% over the prior year, down from 3.5% in June.
Consumer spending also softened in July, with retail sales declining 0.6% after five consecutive monthly gains. The housing market weakened as existing home sales fell 1.7% from June, while the average 30-year fixed mortgage rate increased to 6.54%.
The report also notes that real gross domestic product increased at an annualized rate of 1.5% in the second quarter, slowing from 2.1% in the first quarter. Consumer spending, investment and exports contributed to growth, while government spending declined.
The complete July 2026 Investment Report is available at treasurer.ok.gov, including investment performance, portfolio holdings, market conditions and economic trends.
