Treasurer’s Office Reports $17.6 Billion Investment Portfolio Amid Rising Inflation and Interest Rates
The Oklahoma State Treasurer’s Office released its September 2026 Investment Report, highlighting the state’s investment portfolio and changing financial market conditions as rising energy prices renewed inflation concerns and pushed Treasury yields higher.
The state’s investment portfolio totaled approximately $17.6 billion, with a reported yield of 3.86% up from 3.74% one year earlier. The portfolio’s weighted average maturity was 940 days. Assets under management were down approximately $266 million compared with September 2025.
“Maintaining a balanced and disciplined investment strategy is essential as markets respond to changing economic conditions,” said Treasurer Todd Russ. “Our focus remains on protecting state funds while maintaining liquidity and pursuing competitive returns.”
U.S. Treasurys represented 78.4% of the portfolio, followed by mortgage-backed securities at 10.3% and money market mutual funds at 9.6%. The remaining investments included state and foreign bonds and certificates of deposit.
Financial markets delivered mixed results in September as Treasury yields rose across maturities. The Dow Jones Industrial Average declined 4.3%, the S&P 500 fell 0.5%, and the Nasdaq Composite gained 1.9%. The 10-year Treasury yield rose to 5.29%, while the 30-year yield reached 5.63%, reflecting renewed inflation concerns and changing expectations for Federal Reserve policy.
Inflation accelerated during the month, with the Consumer Price Index rising 3.7% over the previous 12 months, up from 3.4% in August. Higher gasoline prices were a major contributor to the increase. Producer prices also rose sharply, increasing 6.3% year over year, the largest annual advance since December 2022.
The labor market showed signs of slowing, with nonfarm payroll employment increasing by 29,000 in September and the unemployment rate edging up to 4.2%. Meanwhile, retail sales increased 0.8% during the month, supported in part by higher gasoline receipts, although spending excluding motor vehicles and gasoline rose just 0.2%.
The report also examines Federal Reserve policy, housing market conditions and national economic growth. The latest estimate showed real gross domestic product increased at an annualized rate of 2.2% in the second quarter of 2026, supported by investment and consumer spending.
The complete September 2026 Investment Report is available at treasurer.ok.gov, including investment performance, portfolio holdings, market conditions and economic trends.
