Nice and Quiet – Just the Way We Want It

We know that there are folks that like to see a little volatility in the interest rate and stock markets so they can do a little ‘flipping’ of various issue for quarters, but right now we aren’t in that mode. We like to have it nice and smooth and if markets move higher or lower we like them to move slowly.

The 10 year treasury is slowly ticking higher today from 2.90% to 2.93%. A slow grind that doesn’t upset the apple cart. The move is simply a reversion to slightly higher rates after falls based upon trade worries and North Korean chatter. We suspect that if we don’t get presidential tweets this week that rates will head back to 3% before stalling out for a bit of consolidation–that is just fine with us.

Remember that security prices remain relatively stable as long as interest rates move slowly. 10-15 basis points are not disruptive if they come over a month long period, but if they move in a day we have chaos.

2 thoughts on “Nice and Quiet – Just the Way We Want It”

  1. Yes, it’s definitely quiet, alright….eerily quiet. Could be the calm before the storm? Sure hope not.

  2. Nuveen cut the dist on quite a few CEF’s today.. across the board.. muni, floating rate, pfd &income, even target date funds (tweaks I guess).. most of these funds use leverage so I guess the higher cost of leverage may be one cause .. interesting to me.. not long anything in the fixed income CEF space these days.. don’t need the income and not finding the values to be honest.. here is the SA release .. Bea https://seekingalpha.com/pr/17180582-nuveen-closed-end-funds-declare-distributions

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