Once again we see ‘soft’ economic data and substandard earnings in the tech sector and interest rates and equity prices ‘party’. Actually it is kind of nice to have days like the last few–give us all a mental rest. My accounts have bounced a little–with the emphasis on ‘little’.
New house sales came in soft this morning – down 10.9% from August and down 17% from a year ago—not exactly a crumbling market, but directionally favorable for interest rates. The 10 year treasury yield is all the way down to 4.01%–down about 10 basis points. Seems folks are hanging their hats on a ‘pause’ or less hawkish view from the Fed come 11/2–moving these markets higher kind of sets us up for potential disappoint from Fed Chair Powell.
Yesterday I did nibble on the 2 issues I mentioned – here. Now I am looking to see if I want a little more of the Customers Bancorp (CUBI) 5.375% baby bond (CUBB) with a current yield of 6.62% and a maturity in 2034–with cash positions being very low I am ‘shopping’ carefully.