Markets are very calm right now with equity futures pretty flat. Interest rates are universally higher with the 10 year at 3.62% which is up 14 basis points on the week.
The FOMC will announce the interest rate hike (or no hike) at 1 p.m. central time. But really the main event will be what Powell has to say at his news conference at 1:30 pm-central. Does Powell spook the market at the presser? Will he send mixed signals? We have no idea on these questions, but it is one of the few times we will have the TV on for a few minutes.
Yesterday we finally had buyers step in to the income arena with prices up a bit on the day. We had plenty of nervous nellies selling early yesterday at ‘get me out!’ prices. Hennessy Advisors baby bonds 4.875% (HNNAZ) is my best example. The issues fell $2.36/share on a 1000 share trade at $19.80, but a couple buyers (literally) stepped in and the issue closed at $22.96.
Yesterday one of my Tri-Continental preferred (TY-P) orders executed at $47.50. I have another GTC buy order at a lower price. I have another GTC buy order in on the GAMCO Natural Resources 5.2% preferred (GNT-A) at $21.xx–the issue bounced yesterday to close at $22.42.. My orders will remain in place–for the sock drawer.
So let’s get this day going and see what Jay Powell has to tell up in 6 hours.