Last week was kind of a crazy week. Relatively strong jobs numbers on Friday should have sent the S&P500 tumbling and the 10 year treasury yield much higher–and these reactions to the job numbers did occur–for about 15 minutes before reversing and ending higher. On the week the S&P500 fell by 1.5%.
The 10 year treasury closed the week at 4.04%—after trading in a range of 3.89% to 4.10%. The yield rose a giant sized 18 basis points higher from the close the previous Friday. With market expectations for 6 interest rate cuts this year markets were ‘set up’ for large moves on any relatively strong jobs numbers.
This week we minimal economic news Monday-Wednesday, but then we have the consumer price index (CPI) on Thursday and producer prices (PPI) being released on Friday. We may see interest rates float +/- 5 basis points Monday through Wednesday and then move strongly in one direction or the other on Thursday or Friday.
The Fed Balance Sheet fell by about $32 billion last week — a strong move lower as the reduction the last couple of weeks was relatively minimal and we are still on a $95 billion/month reduction target.
Last week was a strange week in trading of $25/share preferreds and baby bonds. While interest indicated that prices should fall–they didn’t. The average share rose 2 cents, investment grade issues fell 3 cents, banking preferreds rose 5 cents, mREIT preferreds were down 5 cents and shippers rose by 15 cents. All in all a good week for investors given the interest rate moves on the week.
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Last week we had no new income issues priced. Below are the last 10 new IPOs we had in preferreds and baby bonds–pretty much trading in a strong fashion.
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Mfa baby bonds ! The gift . Look where it trades versus their prefs .
List please Tim
Will be getting it.
Sorry didn’t mean to be impatient !