So the 10 year treasury is above 3% at 3.02% and this far all is calm and quiet–no panic. As always it is not the absolute level but is the speed of interest rate movements. Honestly we didn’t think the rate would get above and hold the 3% level so quick, but we are fine with it as long as it pauses for digestion at this level–no further big moves higher.
Short/medium duration preferreds and baby bonds have held up well in the last few days so it will be interesting to see what happens today.
We will be simply watching today–certainly no buying or selling anything since we need to see some digestion of interest rate gains before proceeding.