Summary

• The first quarter of 2026 was defined by competing forces that kept short-term Treasury yields firmly range-bound despite shifting expectations for Federal Reserve policy.
• The 2-year Treasury yield remained well contained throughout the quarter, generally trading within a relatively narrow 3.55% to 3.75% range.
• The Federal Reserve maintained its target range at 3.50% to 3.75% and reinforced a data-dependent stance at the March FOMC meeting.
• As of March 31, 2026, the Gabelli U.S. Treasury Money Market Fund maintained a WAM of 57 days, positioning the portfolio to capture attractive yield while maintaining sufficient daily liquidity.
• The Gabelli U.S. Treasury Money Market Fund continued to employ a laddered approach, combining ultra-short maturities to meet liquidity needs with selectively longer-dated Treasury bills to lock in yield.

The first quarter of 2026 was defined by competing forces that kept short-term Treasury yields firmly range-bound despite shifting expectations for Federal Reserve policy. Entering the year, markets anticipated further easing in 2026, although the timing and pace