Reso 2025-166 OPEB & Investments Report

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QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2025 Multi-Asset Class Management FIXED INCOME • The U.S. bond market, represented by the Bloomberg U.S. Aggregate Index, returned 2.0% during the third quarter. • The Bloomberg U.S. Treasury Index closed the quarter returning 1.5%. As the Fed cut rates for the first time in September 2025 and guided two more rate cuts for the year, the yield curve flattened slightly as rates fell across the duration spectrum. 30-year Treasury yields fell to 4.7%, while the 2-year ended at 3.6%. Cash markets continued to provide higher yields than the 2-year Treasuries. • Corporate credit saw positive returns across the quality spectrum for the quarter. The Investment Grade Bloomberg U.S. Corporate (IG Corp) Index returned 2.6% while High Yield bonds, as represented by the ICE BofA High Yield (HY) Index, returned 2.4%. Spreads tightened slightly over the quarter and are now below the 10-year average for both investment-grade and high yield. High profit margins, continued issuance, continued buybacks and ongoing mergers and acquisitions (M&A) activity points to positive corporate sentiment. • The fixed-rate mortgage market, as measured by the Bloomberg U.S. Mortgage-Backed Securities (MBS) Index returned 2.4%. On the commercial side, the Bloomberg U.S. Agency CMBS Index returned 1.6% while the non- agency CMBS Index posted a return of 1.9%. Source: Bloomberg. Returns for Fixed-Income Segments Periods Ended September 30, 2025 Source: Bloomberg. U.S. Treasury Yield Curve 3.61%3.74%4.15% 4.73% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 9/30/2024 6/30/2025 9/30/2025 3-mo 2-yr 5-yr 10-yr 30-yr Blmbg U.S. Aggregate Blmbg U.S. Treasury Blmbg U.S. MBS Blmbg U.S. Corporate ICE BofA U.S. HY QTD 2.03%1.51%2.43%2.60%2.40% YTD 6.13%5.36%6.76%6.88%7.06% 1 Year 2.88%2.06%3.39%3.63%7.23% 0% 1% 2% 3% 4% 5% 6% 7% 8% 2.6 Exhibit A Resolution No. 2025-166 Page 9