Wow!! The 10 year treasury is trading with a yield right now of 4.28%–who would have guessed that Fed yakkers who had worked hard to jawbone rates higher a few months ago are now talking in the opposite direction. Of course in the long term markets and supply and demand will determine where rates trade at – in the short term who knows. Yesterday we had no fewer than 5 Fed yakkers. Today we have a couple more.
Today we have a revision to last quarters GDP–I don’t think this will be a market mover–just a tweak to numbers already released.
I reviewed CD rates this morning–Fido still is offering 5.55% for a 1 year callable from JPM–but even 5.4% on 3 month issues. eTrade is showing a 5.65% callable from JPM with 5.4% on a 3 month. Still surprisingly solid rates. I will have quite a bunch of CDs maturing mid December so will have decisions to be made–if short term rates hold in the 5.2% or slightly above area I can see doing some 3 month issues, but no doubt I will be buying more preferreds and baby bonds. I have my eye on some buys now–additions to current holdings. Even the Tri-Continental issues I highlighted has the potential for over a 10% total return in the next year–lots of good targets out there yet.
Well it looks like we will have a little party in equities with the S&P500 up almost 1/2% premarket. Fed official Loretta Mester speaks at 12.45 p.m. (central)–maybe her hawkish tone will bring things down–or maybe she will reverse directions and jump on the dovish bandwagon–who knows?