And the beat goes on . . .

The U.S. economy continued to crank out jobs in May, with nonfarm payrolls surging more than expected despite multiple headwinds, the Labor Department reported Friday.
Payrolls in the public and private sector increased by 339,000 for the month, better than the 190,000 Dow Jones estimate and marking the 29th straight month of positive job growth.
The unemployment rate was at 3.7% against the estimate for 3.5%, just above the lowest level since 1969.

I wonder how Mr. Market will like that. I don't think the Fed will.

Interesting that it was a debt-ceiling suspension (vs an increase by certain amount) to 1/1/25. So, there may be lot of spending coming forward. Strange that the new deadline would be during a possible limbo period between the elections and when a new government comes in. But the Treasury will have the tricks of extraordinary measures to continue for months beyond that deadline. IMO, a better date could have been a few weeks after the inauguration date in 2025.
I do agree with Yellen that debt-ceiling issue shouldn't be tied to other issues - as it reflects what has been appropriated already. I wish that Congressional appropriations and corresponding debt-ceiling adjustments were concurrent. But then, how can the President, the House and the Senate can have "fun" making the DC "sausage"?
https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/debt-limit

Our best and brightest, no? I almost think Krugman could have done a better job.
So what happens next?
Stock rally? Stock schmeissing?
Tbills interest rate sky high?
Muddle along?

Everybody goes back to watching inflation indicators and the Fed. I think there's an employment report tomorrow.
The AI rally is the novelty act. Hard to see a wide and deep rally when people can get an easy 5%+ while they watch from the sidelines. I don't see t-bills going a whole lot higher.
But I am often wrong. I didn't think the Cards would recall Jordan Walker until he had seen some of the better pitching staffs in the International League. That would have take him to the All Star break.
What is stock schmeissing? Merriam Webster tells me:

a bid in klaberjass that requires the opponent to accept the bidder's trump suit or abandon the hand

And

German schmeissen to fling, throw away, from Middle High German smīzen to stroke, smear, strike, from Old High German -smīzan (in bismīzan to defile, stain)

I'm guessing you're thinking of the second example.

https://www.sec.gov/Archives/edgar/data/1016073/000139834423011419/fp0083721-1_497.htm
497 1 fp0083721-1_497.htm
25 East Erie Street
Chicago, Illinois 60611
1-800-560-6111
DRIEHAUS MICRO CAP GROWTH FUND
Ticker: *DMCRX
(the “Fund”)
SUPPLEMENT DATED JUNE 1, 2023
TO THE PROSPECTUS AND SUMMARY PROSPECTUS FOR THE FUND DATED APRIL 30, 2023
(the “Prospectus” and “Summary Prospectus, respectively)
On May 31, 2023, the Board of Trustees of the Driehaus Mutual Funds approved the re-opening of the Driehaus Micro Cap Growth Fund (the “Fund”) to certain existing investors, as further described below. This change, referred to as a “soft-close,” will be effective immediately after 4:00 pm Eastern Time on June 9, 2023.
You may purchase Fund shares and reinvest dividends and capital gains you receive on your holdings of Fund shares in additional shares of the Fund if you are:
·A current Fund shareholder;
·A participant in a qualified retirement plan that offers the Fund as an investment option or that has the same or a related plan sponsor as another qualified retirement plan that offers the Fund as an investment option; or
·A financial advisor or registered investment adviser whose clients have Fund accounts.
You may open a new account in the Fund if you:
·Are an employee of Driehaus Capital Management LLC (the “Adviser”) or its affiliates or a Trustee of Driehaus Mutual Funds;
·Exchange your shares of another Driehaus Mutual Fund for shares of the Fund;
·Hold shares of the Fund in another account, provided your new account and your existing account are registered under the same address of record, the same primary Social Security Number or Taxpayer Identification Number, the same name(s), and the same beneficial owner(s); or
·Are a financial advisor or registered investment adviser whose clients have Fund accounts.
These restrictions apply to investments made directly through Foreside Financial Services LLC, the Fund’s distributor, as well as investments made through intermediaries. Intermediaries that maintain omnibus accounts are not allowed to open new sub-accounts for new investors, unless the investor meets the criteria listed above. Once an account is closed, additional investments will not be accepted unless you meet the criteria listed above. Investors may be required to demonstrate eligibility to purchase shares of the Fund before an investment is accepted. The Fund reserves the right to (i) eliminate any of the exceptions listed above and impose additional restrictions on purchases of Fund shares; and (ii) make additional exceptions that, in the Adviser’s judgment, do not adversely affect its ability to manage the Fund.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
For more information, please call the Driehaus Mutual Funds at 1-800-560-6111

Math for Stable Value (SV) Separate Accounts
Self-correcting SV crediting rate (CR) formula:
CR = (1 + 0.01*YTM) * (MV/BV)^(1/D) - 1 – F,
where
CR is the SV crediting rate, YTM is the yield-to-maturity of the underlying portfolio, BV is the book value (or contract value), MV is the market value, F is the wrap fee. When rates go up, MV < BV & CR < YTM; when rates go down, MV > BV & CR > YTM.
https://ybbpersonalfinance.proboards.com/thread/451/math-stable-value-separate-accounts

stillers: BTW, I'm starting to feel genuine sorrow for your family. And I consider that a big step on my part.
FD: Your usual, I post about investments and you troll my thread and attack me personally. After years that you claimed I don't have a clue, would never retire, and would never make it in retirement, the opposite is true. I retired years ago in 2018. Our portfolio size grew from 25+ times our expenses to close to 50 times, not including SS. All documented (here). We keep spending money on weeks of travel around the world, restaurants, and a new vehicle and are extremely busy. Life is good, no need to feel sorrow, unless you are talking about yourself.

NYT reports this: "The Treasury announced on Thursday that it would delay auctions of three-month and six-month “bills” — short-term debt that the government no longer has room to take on until the borrowing cap is suspended."
Presumably that means the 6/5 auctions.
Debt Limit Fight Moves to the Senate ...

3-day T-Bill auction rate today was "only" 6.256%. Bids were 2.38x what the Treasury needed ($25 billion). But then the debt-ceiling deal cleared the House, and it is expected to go through the Senate today or tomorrow (after 2-3 Senators' objections/amendments are heard and rejected). https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230601_1.pdf

https://www.sec.gov/Archives/edgar/data/883622/000113743923000766/delivyintlsmallcap052023497.htm
497 1 delivyintlsmallcap052023497.htm
IVY FUNDS
Delaware Ivy International Small Cap Fund (the “Fund”)
Supplement to the Fund’s Prospectuses each dated January 30, 2023, as amended
On May 24, 2023, the Board of Trustees of Ivy Funds unanimously voted to approve a proposal to liquidate and dissolve the Fund. The liquidation and dissolution are expected to take effect on or about August 31, 2023 (“Liquidation Date”) and the proceeds (less mandatory tax withholding) will be provided to the address of record if no action is taken. Retirement accounts held directly on the transfer agency platform within the Fund will be liquidated on or about the Liquidation Date and the proceeds (less mandatory tax withholding) will be mailed to the address of record if no action is taken.
Shortly before the Liquidation Date, the Fund may convert to cash and cash equivalent positions as a temporary defensive measure to preserve value. After the Fund is converted to cash, it may not achieve its investment objective. For Fund accounts with automated purchases, exchanges, and/or withdrawals established, these transactions will cease prior to liquidation if no action is taken.
The Fund will be closed to new investors and all sales efforts will cease as of the date of this Supplement. However, the Fund will continue to accept purchases from existing shareholders (including reinvested dividends or capital gains) until five (5) business days before the Liquidation Date.
Until the Liquidation Date, shareholders of the Fund will have the opportunity to exchange their shares for shares of the same class of any other Delaware Funds by Macquarie® fund. Any exchange would be made at the current net asset values of the Fund and the selected Delaware Fund. Shareholders may redeem their Fund shares at any time prior to the Liquidation Date. No applicable contingent deferred sales charge will be assessed in connection with any redemption of shares from the Fund prior to the Liquidation Date.
Effective the date of this Supplement, the following is inserted before the first paragraph of the Fund’s prospectus section entitled, “Fund summaries — Delaware International Small Cap Fund — Purchase and redemption of Fund shares”:
The Fund is liquidating and is therefore closed to new investors. Existing shareholders of the Fund may continue to purchase shares until five (5) business days before August 31, 2023.
Because everyone’s tax situation is unique, you should consult your tax professional about federal, state, local, or foreign tax consequences before making an investment in a Fund.
Delaware Management Company is an indirect wholly owned subsidiary of Macquarie Group Limited (MGL). None of the entities noted in this document is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia) and the obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (Macquarie Bank). Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these entities. In addition, if this document relates to an investment (a) each investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group company guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
Please keep this Supplement for future reference.
This Supplement is dated May 31, 2023.

Now the Treasury has announced 1-day T-Bill ($15 billion; reopening) to be auctioned on 6/2/23, issued/settled on 6/5/23, maturing on 6/6/23. May be someone can remember if this was also done during the past the debt-ceiling crises when it came so close. (BTW, I am on Treasury email alert list for auction announcements)
https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/A_20230601_1.pdf

1y Ts are still fairly attractive at a little over 5% yld, but no telling if they'll last at ~ that level till the next auction on the 13th.

I will reinvest more 3mo and 6 mo T bills next week as several of them matured earlier this month. As of 5/31/23, 2 yr and 10 yr notes are yielding 4.4% and 3.6%, respectively. More attractive than last year.

FED will assessing more data on the economy (and that is appropriate given the slowing economy). WSJ is behind a paywall.
https://wsj.com/articles/fed-official-says-rate-pause-doesnt-signal-end-to-hikes-758041e5
Also CME Fedwatch has lowered rate hike probability from 66% to 25%. The next FOMC meeting is on June 13-14.
https://cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

More information.
https://fidelity.com/news/article/top-news/202306010621RTRSNEWSCOMBINED_KBN2XN2NI-OUSBS_1?print=true
The moderates on both sides came together to advance the bill.
https://fidelity.com/news/article/top-news/202306010621RTRSNEWSCOMBINED_KBN2XN2NI-OUSBS_1?print=true
Futures market this morning is nearly flat as the bill moves to the senate and to President Biden. S&P500, +0.2%, DJIA, -0.18%, NASDAZ, -0.12%.
https://finviz.com/futures.ashx

AAII Sentiment Survey, 5/31/23
For the week ending on 5/31/23, bearish remained the top sentiment (36.8%; above average) & bullish remained the bottom sentiment (29.1%; below average); neutral remained the middle sentiment (34.1%; above average); Bull-Bear Spread was -7.7% (below average). Investor concerns: Inflation (moderating but high); economy; the Fed; dollar; crypto regulations; market volatility (VIX, VXN, MOVE); Russia-Ukraine war (66+ weeks, 2/24/22- ); geopolitical. For the Survey week (Th-Wed), stocks were up, bonds up, oil down sharply, gold up, dollar up. The debt-ceiling cleared the (critical) House; the Senate & WH approvals should follow soon. #AAII #Sentiment #Markets
https://ybbpersonalfinance.proboards.com/post/1051/thread

https://www.sec.gov/Archives/edgar/data/883622/000113743923000756/ivyemmkt052023497.htm
IVY FUNDS
Delaware Ivy Emerging Markets Local Currency Debt Fund (the “Fund”)
Supplement to the Fund’s Summary Prospectus and Statutory Prospectus
each dated January 30, 2023, as amended
On May 24, 2023, the Board of Trustees of Ivy Funds unanimously voted to approve a proposal to liquidate and dissolve the Fund. The liquidation and dissolution are expected to take effect on or about August 31, 2023 (“Liquidation Date”). Retirement accounts held directly on the transfer agency platform within the Fund will be liquidated on or about the Liquidation Date and the proceeds (less mandatory tax withholding) will be mailed to the address of record if no action is taken.
Shortly before the Liquidation Date, the Fund may convert to cash and cash equivalent positions as a temporary defensive measure to preserve value. After the Fund is converted to cash, it may not achieve its investment objective. For Fund accounts with automated purchases, exchanges, and/or withdrawals established, these transactions will cease prior to liquidation if no action is taken.
The Fund will be closed to new investors and all sales efforts will cease as of the date of this Supplement. However, the Fund will continue to accept purchases from existing shareholders (including reinvested dividends or capital gains) until five (5) business days before the Liquidation Date.
Until the Liquidation Date, shareholders of the Fund will have the opportunity to exchange their shares for shares of the same class of any other Delaware Funds by Macquarie® fund. Any exchange would be made at the current net asset values of the Fund and the selected Delaware Fund. Shareholders may redeem their Fund shares at any time prior to the Liquidation Date. No applicable contingent deferred sales charge will be assessed in connection with any redemption of shares from the Fund prior to the Liquidation Date.
Effective the date of this Supplement, the following is inserted before the first paragraph in the section of the prospectus entitled “Fund summaries – Delaware Ivy Emerging Markets Local Currency Debt Fund – Purchase and redemption of Fund shares”:
The Fund is liquidating and is therefore closed to new investors. Existing shareholders of the Fund may continue to purchase shares until five (5) business days before August 31, 2023.
Because everyone’s tax situation is unique, you should consult your tax professional about federal, state, local, or foreign tax consequences before making an investment in the Fund or acting on a distribution check (if applicable).
Delaware Management Company is an indirect wholly owned subsidiary of Macquarie Group Limited (MGL). None of the entities noted in this document is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia) and the obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (Macquarie Bank). Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these entities. In addition, if this document relates to an investment (a) each investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group company guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
Please keep this Supplement for future reference.
This Supplement is dated May 31, 2023.

Stable-Value (SV) Rates, 6/1/23
TIAA Traditional Annuity (Accumulation) Rates
No changes
Restricted RC 6.50%, RA 6.25%
Flexible RCP 5.75%, SRA 5.50%, Newer IRAs 5.20%
TSP G Fund hasn't updated yet (previous monthly rate was 3.625%).
Options outside of workplace retirement plans include m-mkt funds, bank m-mkt accounts (FDIC insured), T-Bills, short-term brokered CDs.
#401k #403b #StableValue #TIAA #TSP
https://ybbpersonalfinance.proboards.com/post/1050/thread

Well supposedly Treasury 'only' had like $45B on-hand the other day, so they probably need all the cash they can get to meet daily outflows/payments.