Weak PMI Doesn’t Help Interest Rates

Today we had the PMI (Purchasing Managers Index) and the numbers came in lower than expectations – soft with a reading of 47.3 – readings are supposed to indicate contractions in the economy, but who really knows if this is a good indicator.

I thought maybe the soft number would help push interest rates at least a bit lower, but alas the 10 year treasury is now up 2 basis points to 4.23%.

Average prices of $25/share preferred’s and baby bonds are dead flat (plus or minus a penny)–there are many times that ‘flat’ is good and this is one of these times–I’m happy to be flat.

I’ve done nothing today – haven’t even opened by accounts–just waiting and watching. I am looking to nibble a bit tomorrow if markets are calm–still in no hurry as there will not likely be any upward movement in income issues–we need to have a flattish market for a while before we see any upward movement in prices–needs to digest and let investors gain some confidence.

5 thoughts on “Weak PMI Doesn’t Help Interest Rates”

  1. Just bot some Wintrust WTFCP at 24.50.. strong regional bank, 7% yield here w a reset of 5yr Treasuries off a high base as seen here this site in Tim’s info on the issue. Happy to hold in ROTH , been watching these 5yrT reset issues for a while. Probably another wild weak.

    1. Good price… low so far 24.55 wherever I look- small amount that doesn’t register? Just curious if that happens.

  2. Equities appear to think the rate increases are over but fixed income doesn’t seem to be convinced.

    Interesting times for sure

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