As expected the 10 year treasury is tumbling today after ending lower yesterday–currently it is at 2.635%. If these rates continue we will see some modest housing stimulation in the spring market as mortgage rates move a bit lower–and in many markets value are falling a bit–a good combination to help the lethargic housing market.
Today the preferred and baby bond markets are firm to higher with the average share up around 3-4 cents. We have NO new lows today–the only 2 issues showing on the list today NEAR new lows are the 2 issues either being redeemed or expected to be redeemed–the 6.70% JPMorgan Chase perpetual (JPM-B) which has been called for redemption and the 6.375% Seaspan baby bonds (SSWN) which matures on 4/30.
The new JPMorgan Chase 6% preferred (JPM-C) is trading on the NYSE today–wow if we would have thought the issue would trade this strong we would have bought some–now at $25.86/share. Can’t imagine wanting a 6% issue this badly-oh well I guess that is what makes a market.
The clock is ticking on the government shutdown, the Chinese trade tariffs as well as the debt ceiling. It looks to us like these items will dominate much of the news over the course of the 4 weeks. If these were resolved we would have find something else to worry about.