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Monday Morning Kickoff

Well here we go again–a new week!!

The S&P500 rose by 2.2% last week–no doubt a super week for common stock owners Actually a great week for common and preferred share holders.

The 10 year treasury yield closed last week at 4.44% which was about 18 basis point lower than the close the previous Friday. The yield was as low as 4.38% on Friday as economic news continues to be favorable.

We had the CPI and PPI reports last week – both which were supportive of lower interest rates. Jobless claims also came in supportive of the lower trend.

This week we have a little economic news, but being Thanksgiving week news is light. We have leading economic indicators (LEI) today, minutes of the last FOMC on Tuesday and durable goods and consumer sentiment on Wednesday and lastly the purchasing managers indexes on Friday – a light calendar.

The Federal Reserve balance sheet fell by $46 billion as the Fed continues to let treasuries and mortgage securities run off the balance sheet. Falling interest rates last week continued to provide cover for ongoing quantitative tightening.

Last week was a nice week for the average $25/share preferred and baby bond. The average share moved 25 cents higher while investment grade issues moved 35 cents higher. Banks moved 31 cents higher with mREIT preferreds up 12 cents. All in all a decent week.

Last week we had no income issues priced.

2 thoughts on “Monday Morning Kickoff”

  1. Successful $20B treas auction of 20yr = 4.78%
    TLT and others up ( and quite a bit since lows).

  2. Good morning and happy Thanksgiving week!

    I have to imagine things will be pretty quiet.

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