10 Year Treasury Wants to Go Above 2.90%

In the stock and bond markets today about the only thing kind of exciting is that the 10 year treasury has bumped up against the 2.90% area and is now trading at 2.88%–up 3 basis points today. Yesterday when we wrote the 10 year was at 2.84% then crept back up at the days end.

Today the higher rates are based upon no news–maybe worries about the Fed (not really a worry to us). Maybe worries about the Chinese selling some of their trillion worth of U.S. debt.

We are watching some of the term preferred monthly payers (preferreds). We own tons but may buy more if they move lower from here. Earlier today the 6% Gladstone Capital issue (NASDAQ:GLADN) was down around $24.70, but is now around $24.95. Over time, as rates creep higher these issues will be lower–even though they are term preferreds. The GLADN has a mandatory call in 2024 so it is most susceptible to higher long term rates, but a fall to $24 or some number makes the yield to maturity pretty tasty.

We are continuing to wait and get the Fed out of the way and then we will make a couple purchases.

8 thoughts on “10 Year Treasury Wants to Go Above 2.90%”

  1. Hi GW–I think it is a decent issue until which time the issue floats and the spread is skimpy at 3.985%

    Certainly investors think it is decent as it is trading up a bit.

    1. Sometimes luck may beat skill, Tim. Connecticut Water and San Jose Water annonunced a plan to merge. I bought a small slug of CTWSO a grey market water ute preferred issued in 1956 at $14.50 and $15.50. They announced the two little prefereds would be redeemed if merged. That would mean a redemption price of $21. It hasnt traded since last September, lol.

  2. Yes I want to be a buy and holder – at a nice 7%. I need your flipping goose from time to time (and I do on occasion), but I am usually flying from one real job to the next (the jobs that pay me money–not the website ‘jobs’) without time to give the flip attention that I feel it needs.

    Yes of course I know what you do—I have followed most folks around the web for years and years–how else to learn?

    1. Tim, I would suggest you do just fine without learning anything from me, lol.
      With as many above par, past call issues I have you must think, “This guy is crazy or must have a pension.” Im definitely the latter and maybe the former, also. Only I can buy a small amount of RLGT-A yesterday and also eagerly waiting to see if I get my oversubscribed request for GDL-C, lol.

      1. Grid, any update on the GDL-C today?

        In the meantime, I dipped into a couple lots of TSCLL. The underlying company fundamentals of TriStateCapital look pretty darned good. Revenue and EPS are up x3yrs at least. Great rating by analysts, also.

  3. Hi GW–the answer is in both. One purchase will be something I personally have plenty of but will get a bit more.

    1. That is what I do Tim. I know you are more of a buy and holder, and I am a bit of a flipper and rotator to goose returns. But I stick mostly with the same group of veteran preferreds. Unfortunately none of mine are budging all staying high for time being. Nothing to flip into and the ones I own are all near their recent highs, or recently kicked out a divi and crawled right back to near where they were already.

  4. Thanks, Tim. Hope you will keep us updated on those purchases.

    Are you planning on purchasing for the portfolio’s posted on the website or are these purchases going to be personal – or both?

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