Yesterday we got friendly consumer price numbers (CPI) and today we can complete the week with friendly producer prices (PPI)–of course the numbers are not out for 60 minutes so who knows what we will see.
The 10 year treasury is at 4.22% this morning–up 3 basis points–really just trending as we await the PPI numbers. After a sharp equity setback yesterday in the NASDAQ it will be interesting to see if we get some stability there–the tech stocks will drive the bus–one way or the other.
Today I will be doing no equity buying, although I continue to have some cash on hand. My move toward preferreds and baby bonds is somewhat glacial in speed. I did buy a couple 6 month CDs yesterday–these 5.2% issues won’t be with us too long if we begin to get Fed Funds rate cuts so if one wants to lock down some longer term issues now is a good time.
Board Poll:
What will the average one year Treasury rate be over the next 10 years:
a) above 5%
b) between 4% and 5%
c) between 3% and 4%
d) between 2% and 3%
e) below 2%
Had a sell limit order out for ONBPP that hit at 25.15 yesterday.
Who knows? My thoughts were going into next dividend date it would run up so maybe sold too soon. Now have to find something to replace it with for the yield. The bank seems to be doing ok unless something unexpected shows up. But the economy as a whole is slowing down. Banks will probably be reporting less profits with added regulations. Kinda a glass is half full situation. Some will take it as the news is good and others as it could get worse. I may have gotten off the train too soon with rates due to be cut but I was thinking I could always buy back hopefully at a lower price after awhile. I miss the dividend play which is always tough but I have a decent profit, easier to time a purchase to collect the dividend or the run up in price than it is to know when to sell.
Aaand they’re hot. But hot means 2.6%. So that doesn’t strike me as so hot. Looks like we’re in for another “we need more data” speech.