Well yesterday was a pretty ugly day all around–it was difficult to fully escape the carnage if you are invested in any part of stock and bond markets. I don’t like to take 1/2% portfolio losses–but facts are facts and one needs to focus on the longer term–not on 1 day.
Yesterday the JOLTs (job openings and labor turnover) report pretty much shocked a bit of reality into investors – 9.6 million job openings against an expectation of 8.8 million is not exactly comforting for those looking everywhere and anywhere for softening economic numbers.
I have said day after day I am sitting on my hands—BUT I had 4 good til canceled orders out there and was quite surprised that one of them executed yesterday. I added to my largest position of XAI Octagon Floating Rate & Alternate Income Term Trust 6.50% term preferred (XFLT-A). The term preferred took a tumble yesterday and a buy order executed @$24.25. The issue has a mandatory redemption on 3/31/2026—current yield to maturity around 7.8%. Given my overweight in this issue I will be unable to buy more of this issue.
Well we have economic news coming shorting–and now that we have seen the 10 year treasury trade up in the mid 4.8%s everything will be parsed even more closely.
The current 10 year treasury yield has backed off from the 4.84% area earlier this morning to 4.77% now – we will see how long that lasts.