After breaching the 2.90% ceiling yesterday and trading up to 2.92% the 10 year treasury is trading at 2.88%. Kind of a surprise, but just wait–it will change.
Utilities and REITs are up a tiny amount, while preferreds and baby bonds are treading water–guess that is better than lower, but we are relatively convinced (in our minds) that rates will move higher any second. As we have conveyed before we don’t believe it matters at all what the FED does as the runoff of balance sheet assets will put a floor under the 10 year treasury.
We are taking the time today to identify a purchase for the Medium Duration Model Portfolio–maybe even 2 purchases. We will post these before midnight (we do most of our work in the evening).
We are impatiently waiting for the new Sotherly Baby Bonds (NASDAQ:SOHOK) to start trading–should be anytime now, but we are not showing it on Fidelity or eTrade at this time.