Well the 10 year treasury has popped today to .75% which takes it to a level we haven’t seen since May.
Thus far a 5 or 6 basis point move has not been detrimental to pricing in income securities–and likely won’t be unless the ‘pop’ is more like .125 to .25% in a single day–then you are going to create some ‘nervous nellies’.
On a historical basis it has taken a jump of at least 1/8% for anyone to even notice–and more like 1/4% to start to see a bit of damage to preferred and baby bond pricing–numerous days with movements in yields a few basis points higher will be generally well tolerated.
On the other hand with these super low coupon issues being sold lately the reaction to rates moving higher could surprise us in these particular issues. No one wants to be holding a coupon of 3.875% when rates move higher.
So we will see what happens in the next few days–I suspect this is a very temporary move higher in yields–simply based on stimulus possibilities.