10 Year Treasury Strongly Breaches 3%

It was bound to happen and today (actually overnight) the 10 year treasury has strongly breached the 3% level and is currently trading at 3.06%–the highest level in years.  Honestly there is not a particular visible reason for this move—fewer buyers than sellers I guess.

While there is no panic in the interest rate market place REITs, preferred stocks and baby bonds are all reacting negatively to rates.

REITs are off 1 1/2% today and preferred stocks are off about a nickel on a average share.

We would like to have the 10 year hold right in here and drift a little lower.  It’s all about the speed and we don’t want this move in rates getting too carried away to quickly.

Of course we do not react to this type of move, but monitor the situation–more for potential bargains than for anything else.

9 thoughts on “10 Year Treasury Strongly Breaches 3%”

  1. The biggest new event was Trump, again, spewing about trade issues with China. I think this is exactly why the market is tanking – just as it did when he first began saying that trade wars are good and that they are easy to win. What a fast 10%+ correction that was

    Dejavu all over again.

    1. Besides major issues with Argentina and Turkish currencies, you have this:

      From SA: Washington and Beijing are still “very far apart” on trade, U.S. Ambassador to China Terry Branstad announced as trade talks kick off today between the world’s two largest economies. The Trump administration wants a timetable on how China will open up its markets to U.S. exports, and meet pledges with regards to the insurance and financial services sector, as well as reduce auto tariffs.

      1. Hi GW–you may well be right–obviously we have some issues with POTUS spewing stuff.

        I listen to the talking heads on CNBC and they have 1000 reasons for everything happening–usually all balony.

        1. Every single day you can identify 10 reasons why the market should go up and another 10 as to why it should go down. What the talking heads seem to do is wait until the market does whatever it does and, after the fact, pick one of the reasons.

  2. 4 rate hikes (March, June, Sept, Dec.) was the chatter I heard w probabilities rising of the 4th hike in Dec.. Bowman, Clarida FED nominee hearings going on..that may be making people nervous too.. dollar strong.. and of course my theory..”who knows anymore” what moves things! Bea

  3. I think the Fed is going to have to recognize that the sharp ascent in gas prices is going to take a real bite out of the economy. If not, they will raise the 4 times this year and I think we’ll be in a world of hurt. I think the price of gas alone (now) has negated a good part of the ‘tax cut’ that was passed. Oil seems poised to run another $10 from here.

    Anyone remember what happened the last time gas got silly expensive in short order?

  4. Income issues just not impressed so far. We got 10 year as high as Taper Time and yet many veteran preferreds still around from then are still 15-20% higher now than then.

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