Reso 2026-061 2025 Q4 OPEB Trust & Pension Trust Investment Report

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QUARTERLY MARKET SUMMARY For the Quarter Ended December 31, 2025 Multi-Asset Class Management FIXED INCOME • The U.S. bond market, represented by the Bloomberg U.S. Aggregate Index, returned 1.1% during the fourth quarter. • The Bloomberg U.S. Treasury Index closed the quarter returning 0.9%. As the Fed cut rates first in October and then again in December, the yield curve steepened slightly with rates falling in the short to intermediate spectrum while long term yields rose. 30-year Treasury yields rose to 4.8%, while the 2-year ended at 3.5%. 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 0.9% while High Yield bonds, as represented by the ICE BofA High Yield (HY) Index, returned 1.4%. Spreads remained relatively flat for High Yield corporates while they widened slightly for investment-grade corporates over the quarter. Both remain below their respective 10-year averages. Tailwinds of high profit margins, continued debt issuance, and ongoing mergers and acquisitions (M&A) activity points to positive corporate sentiment. Source: Bloomberg. Returns for Fixed-Income Segments Periods Ended December 31, 2025 Source: Bloomberg. U.S. Treasury Yield Curve 3.48% 3.73% 4.17% 4.85% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 12/31/2024 9/30/2025 12/31/2025 3-mo 2-yr 5-yr 10-yr 30- Blmbg U.S. Aggregate Blmbg U.S. Treasury Blmbg U.S. MBS Blmbg U.S. Corporate ICE BofA U.S. HY QTD 1.10%0.90%1.71%0.84%1.35% YTD 7.30%6.32%8.58%7.77%8.50% 1 Year 7.30%6.32%8.58%7.77%8.50% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 2.6 Exhibit A Resolution No. 2026-061