The 10 year treasury yield has taken a pretty good jump the last week–trading as high as 3.30% earlier today (now at 3.27%).
The move higher has meant the 10 year has jumped almost 50 basis points higher in the last 2-3 weeks. I feel fortunate to have only given back 1% of portfolio NAV during this move.
Many times we have discussed that markets can handle higher rates, but at slowly moving pace—let’s slow down–speed kills (at least hurts the portfolio).
Rates are now adjusting to what is believed to be higher signaling from Powell–I would suspect that they will flatten out here shortly, although with full blown quantitative tightening set to start this month we could see this factor alone send rates higher yet (so in other words rates could be flat to down–or they could shoot higher).
It is a good time to add a little to those ‘buys’ you may have missed out on a few months ago, although prices are not at those low levels currently–they remain favorable for long term investors.