With all sorts of pretty good economic news interest rates are trying to move higher once again–yesterday the 10 year treasury closed at 4.01% – the 1st close above 4% since 7/10/2023. We’ll see what happens today as we digest more economic news–rates have backed off a bit from the 4.01% close yesterday and are at 3.97% right now.
The core personal consumption expenditure index (PCE) has just been released at .2% month over month–year over year is 4.1%, both a bit better than expectations.
Equities took a tumble yesterday, but are showing a decent move upward this morning. I see no reason whatsoever for equities to move significantly lower. Economic news is decent and there is plenty of cash sloshing around the world–of course one never sees the drop before it happens–black swans don’t announce themselves in advance.
Yesterday I went ahead and added shares of Affiliated Managers Group 5.87% baby bonds (MGR). This is an add to a position I already held. I am still awaiting trading in the new Eagle Point Income (EIC) 7.75% term preferred (EICB) – I see that Fido has it loaded in their system so we may see trading today. I will buy a partial position assuming trading in the $25 area–that will likely be my last buy until mid August when more money becomes available.