The Oklahoma State Treasurer’s Office released its May 2026 Investment Report, highlighting continued portfolio stability as markets responded to shifting inflation expectations, stronger economic data and changing interest rate projections.
“The portfolio continues to reflect a disciplined investment approach designed to protect state funds while generating competitive returns,” said State Treasurer Todd Russ. “Maintaining a balanced strategy allows us to navigate changing market conditions while supporting Oklahoma’s financial strength.”
The state’s investment portfolio totaled $17.6 billion in May, with the portfolio earning a 3.71% yield, an increase from 3.67% one year earlier. The portfolio’s weighted average maturity was 771 days, reflecting a focus on stability and long-term preservation of capital.
The portfolio remained primarily invested in U.S. Treasurys, which made up 68.5% of holdings, followed by money market mutual funds at 18.4% and mortgage-backed securities at 11.0%. The remaining investments included state and foreign bonds, U.S. government agencies and certificates of deposit.
Financial markets continued to show resilience in May. Equity markets extended gains, with the Dow Jones Industrial Average increasing 2.78%, the S&P 500 rising 5.15%, and the Nasdaq Composite advancing 8.36% during the month. The gains were supported by strong corporate earnings, technology sector performance and better-than-expected economic data.
Economic indicators showed continued strength alongside persistent inflation pressures. Payroll employment increased by 172,000 in May, while unemployment remained steady at 4.3%. Consumer activity also remained strong, with retail sales increasing for the fourth consecutive month.
Inflation remained a key focus for investors, as the Consumer Price Index rose year over year in May. Producer prices also posted their largest annual increase since 2022, reinforcing the Federal Reserve’s continued focus on balancing inflation control with economic growth.
The Oklahoma State Treasurer’s Investment Division manages funds on behalf of state agencies and programs, emphasizing safety, liquidity and competitive returns for Oklahoma taxpayers.
The complete May 2026 Investment Report is available at treasurer.ok.gov, including portfolio performance details, asset allocation, market updates, and economic indicators.
