Well the 10 year treasury breached 3% this morning for the 1st time in over 4 years, but has set back to 2.98% since that time.
Yesterday the 10 year was in the high 2.90’s and preferred stocks and baby bonds fell by 6 cents/share. Today they have fallen by another 6 cents/share. It has been a long, long time since they have reached an average price in the $24.80’s which is where they are at this time. This means that in the last 18 months shares of the average $25 preferred or baby bond has fallen about $1.25/share.
As we write the DJIA is off 280 points as inflation scares continue in the market. Oil prices remain high and all building materials are off the charts high–as anyone trying to build a custom built house knows.
Consumer confidence remains extremely high–much higher than we think it should be, but ignorance is bliss and most folks don’t walk around all day long worrying about interest rates and the national debt like we do–some days we wish we were ignorant of the underlying fundamentals of the these items.
We did notice today that Rick Santelli on CNBC was talking about the next resistance on the 10 year treasury yield is 3.37%. That is a scary number that we would hope wouldn’t show up until next year.
We keep our seat belt fastened as these markets present more scary times.