Major US banks passed the Federal Reserve's recession stress tests, receiving clearance to increase dividends and share repurchases.

All three stock-based TSP funds posted strong gains in June, led by the large company stock C fund, up 7.04 percent, with the small company stock S fund up 6.8 percent and the international stock I fund up 5.94 percent.

The bond F fund meanwhile gained 1.26 percent and the government securities G fund rose 0.19 percent. The returns for the lifecycle L funds were: Income, 1.57; 2020, 2.04; 2030, 4.11; 2040, 4.87; 2050, 5.52.

Much of this strong equity performance for the calendar month was due to timing. Domestic and foreign markets had a big slump through May and a reversal in June, and the pivot occurred right at the beginning of the month. Bank stress test results and Trump-Xi G20 Meeting added to the momentum.

Read more: TSP June Rebound Boosted by Bank Stress Test Results and Calming Trade Talk