Can I say ‘weasel’ anymore–don’t want to offend those poor little guys. Anyway I meant to say interest rates. After being tame 1/2 of today rates have taken off and will likely close at the highest level in about a year–up about 8 basis points.
I suspect that Fed Chair Powell said something that the traders didn’t like–maybe he was not nearly convincing enough when indicating the Fed would keep rates low for a very long time.
Regardless of the cause about 70% of the investment grade baby bonds and preferreds are down today–not too much–guessing less than 1/2% (13 cents or so maybe).
Let’s look at the positive of the move–some of us added a few quality shares last week that were lower – maybe we will get to add a few more soon because again they are moving lower again.
Tomorrow we have ‘official’ employment numbers. Yesterday we had the ADP numbers and showed lower than expected job growth–what will we have tomorrow? If jobs are weakening it is a bit hard to reconcile the higher move in interest rates–but as we all know markets do what they do and moves are not always logical.