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

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

An excerpt from a current report in the San Francisco Chronicle-

Allstate has stopped writing new homeowner, condominium and commercial insurance policies in California, the company confirmed to The Chronicle.
The insurer, the fourth largest property and casualty insurance provider in the state in 2021, paused new policies “so we can continue to protect current customers,” spokesperson Brittany Nash wrote in an email to the Chronicle.
The pause began last year but appeared to receive only a passing mention in industry publications. The Chronicle learned of the development this week, after reviewing an Allstate rate increase request to the California Department of Insurance.
It was not immediately clear what prompted Allstate’s pullback on new policies. But State Farm, the largest provider of property and casualty insurance in California, made waves in late May by announcing it would stop issuing new homeowner policies in the state due to inflation, wildfires and rising reinsurance costs.
That Allstate quietly did the same thing last year signals that the insurance woes in the state may be more severe than the public is aware of.
“State Farm is unusual in that it announces such underwriting actions. It is not required by law and most insurers do not,” said Rex Frazier, president of the Personal Insurance Federation of California, in an email to The Chronicle over the weekend.
The only public disclosure required of insurers pulling back eligibility in the state comes when they ask the California Department of Insurance for rate increases, Frazier said Thursday.
At least two other insurers, AIG and Chubb, which cater to high-end homes, have pulled coverage for some of their customers in recent years.

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

Interesting. Fidelity took them off their list of available Treasuries and TD has killed the CUSIP links on the Upcoming Auctions page. If Treasury can't make the call well before 10a on Monday, it might not be all that successful. Depends on the Senate.

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.

Treasury press release on POSSIBLE delays next week.
https://treasurydirect.gov/instit/annceresult/press/preanre/2023/SPL_20230601_1.pdf

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 ...

This 1-day T-bill is a re-opening of the February 07, 2023 4-month, since that's shown as its OID?

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

@ yogibearbull Would 9% on $100k for 3 days be about $74 ?

What's the point in shooting the messengers? Vanguard erred and was slow to correct things.
The errors that customers saw on their statements were not in reported 7 day SEC yields. Rather they were in "the estimated annual yield and annual income" figures provided to these customers.
If I paid any attention to estimated income on my statements, something I admittedly do only rarely, I certainly would have noticed a discrepancy of about 1.8%. Low ERs can only explain so much, as you said.
According to FINRA, the difference was between "an estimated yield of 1.87 percent for the Vanguard Federal Money Market Fund" and a correct estimated yield of around 0.06 percent.