The 10 year treasury popped fairly hard today on the back of a strong jobs report. The yield traded as high as 2.07% before settling back a bit to 2.05%–this is up a strong 10-12 basis points from the close on Wednesday.
This jobs report, with a supposedly 224,000 new jobs created, goes to show why I don’t make any investment decisions whatsoever based on our “gut feel” for a single data point. Our gut feel was for less than 170,000 jobs being created.
Even with interest rates popping kind of hard preferred stocks and baby bonds are off just a couple pennies (on average) for the day–not exactly a panic.
The talking heads on TV are now arguing why there should still be a rate cut later this month–“talking their books” obviously. It’s a sad time when the Fed lets the stock market dictate the level of interest rates.
We will wait and see what happens–I am not hanging my hat on either a cut in rates or no cut. It has been a long time since I have let those fears dictate the buys or sells that I make–holding a bunch of shorter dated maturity securities helps to relief any stress based on these short term rate cuts (or hikes).