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.