Once again yesterday we saw a pop higher in interest rates, as represented by the 10 year treasury, to the 4.34% level which was up 9 basis points from the Friday close. Apparently the highest rates since 2007 and up hugely this month. When I look at rates – to my old brain, they aren’t historically high – maybe we should have them this high (or higher) for the next 10 years?
In spite of higher interest rates the S&P500 shot up by about .7% which was a darned nice gain considering it all came in the last 1/2 of the trading day. On the other hand I have been watching REITs fairly closely – an area I am likely to play in before too long (who knows when that will be). I watch the tone of the REITs through VNQ. 1 year ago this index was at 95 or so and now it is at 79 – almost a 20% capital loss. I haven’t tried to drill down on individual issues yet, but probably should start to build a watch list.
I just checked CD rates on Fido – still in the 5.50% area for a 1 year (callable) from JPMorgan. Once again I will be seeing a fair amount of maturities in CDs and treasuries in the next 6 weeks and decisions have to be made – rollover the maturities or deploy elsewhere? I have no answer yet since I want to see all the data up until I invest, but my guess is we are going to have these rates or higher for a while–no rush to make a decision.
I likely will do no buying this week since I will be out of the office quite a bit and the odds of me placing trades on my iphone are pretty small, but before leaving the office I may place a couple good til cancelled sell orders today to unload a few small bankers. I have watched some capital gains in these bankers drift away and they may not return for quite some time – I can still lock down some modest capital gains (along with the dividends received).