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.